Microsoft CEO Satya Nadella shocks industry by admitting AI has yet to deliver real value despite massive investment
Microsoft CEO Satya Nadella says
AI
is not creating real value yet, even after lots of money spent. Microsoft invested billions in OpenAI, the company behind ChatGPT. Nadella was on Dwarkesh Patel's podcast and gave a reality check about AI, as per reports.
He said claims about reaching artificial general intelligence are nonsense and just "benchmark hacking." Nadella thinks people should focus on whether AI brings real-world value, not just chase big ideas like AGI, as per the reports Futurism.
When will AI help the economy?
He said the real proof will be if AI helps the economy grow faster, like during the Industrial Revolution. According to him, the world economy should grow 10% or productivity should jump if AI is really working. So far, we haven't seen this kind of growth or value from AI, as per reports.
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OpenAI's top AI still works slowly and needs lots of human help. Nadella's view is practical and down-to-earth, pushing back on too much hype about AGI. He admits generative AI has not generated much value yet. The economy doesn't show signs of speeding up because of AI now, according to the report by futurism.
Big money but big questions
Whether AI will create big value 'when' or 'if' is still debated. Lots of money is being spent by companies like Microsoft and OpenAI on AI technology. A Chinese startup, DeepSeek, showed a cheaper AI that can compete with others but caused a $1 trillion market drop after investors panicked, as per reports.
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Current AI tools have problems like hallucinations and cybersecurity risks. Nadella's podcast talk might be Microsoft's way to lower unrealistic expectations for AI. But Microsoft is still investing big, $12 billion in OpenAI and joining Trump's $500 billion Stargate project with OpenAI CEO Sam Altman, according to the report by Futurism.
Elon Musk questioned if Altman had enough money for Stargate, but Nadella defended it strongly. Nadella told CNBC he's committed to his $80 billion investment despite Musk's doubts.
FAQs
Q1. Has AI started helping the economy grow faster?
No, AI has not yet caused faster economic growth or big productivity jumps.
Q2. Is Microsoft still investing in AI?
Yes, Microsoft is still investing billions in AI projects.
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