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[Tiago Rodrigues]

However, investors continue to raise concerns about the billions being plunged into the ever-evolving technology without a well-established profitability path. Microsoft co-founder Bill Gates warned of an AI bubble while comparing it to the dot-com era, where several internet-based companies became overvalued, leading to a significant crash.

While speaking with Mathias Dpfner, CEO of Axel Springer, the executive admitted that he spends of of his weekends learning about how startups build and develop products. Nadella indicated that Microsoft's size "has become a massive disadvantage" as it tries to establish dominance in the AI space (via Business Insider).

According to the executive, startups are able to make informed decisions quickly because everyone involved in the product development process all sit at the same table. Perhaps more interestingly, Nadella seemingly shared a solution for this issue: unlearning old habits and techniques that once made companies successful and embracing new approaches.

It's interesting that Nadella makes these comments. Earlier this year, the executive indicated that Microsoft was moving away from Bill Gates' revolutionary software vision, which helped build and contribute to the company's immense success. He claimed that the approach might become obsolete in the AI era. Moving forward, Microsoft is poised to double down on security, quality, and AI transformation as its core business priorities.

For note, Microsoft CEO Satya Nadella's pay package hit $96.5 million this year.

Source

Man whenever this bubble bursts somewhere in 2027/2028 (probably?) im gonna be sitting like

 

[Pop]

Time to kill Xbox division

 

[SJRB]

Microsoft can fire another 500,000 people for all I care as long as they're all in the "AI" devision.

 

[LectureMaster]

Sadly no shit. Talked with a few folks at Microsoft, they all have the same sentiment that more layoffs are coming. One team's slogan is "10X yourself with AI!!!"

 

[winjer]

He should start by replacing himself with AI. It would save several millions per year.

 

[Tiago Rodrigues]

Sadly no shit. Talked with a few folks at Microsoft, they all have the same sentiment that more layoffs are coming. One team's slogan is "10X yourself with AI!!!"

Whenever these companies end their fiscal years next year it's gonna be a bloodbath.

 

[ChorizoPicozo]

I bet Nutella would love to have those 80B dollars back and be 16,000 people less bloated. but hey, "Let us have competition". These clowns are unable to build things for themselves, AI ain't fixing shit.

 

[Topher]

is Nadella signalling more layoffs?

 

[SJRB]

The term "scientist" is used quite loosely in the context of "computer scientist", I can assure you.

 

[Kenneth Haight]

 

[Mayar]

Anyway, nothing new...I'm no longer surprised by anything from Microsoft.
Although I'm here for adamsapple and LectureMaster .

 

[RJMacready73]

I've been using Grok pretty much my entire trip in Prague, hey Grok I'm at X location, find me a top rated restaurant that does Y within walking distance... Hey Grok I'm at the Castle, give me some cool facts to tell the kids.. etc etc it definitely has its uses and sure as shit bates using Google

 

[mckmas8808]

Sadly no shit. Talked with a few folks at Microsoft, they all have the same sentiment that more layoffs are coming. One team's slogan is "10X yourself with AI!!!"

This is all HORRIBLE! They are NOT at a size disadvantage. It's times like this where we're all reminded on just how creatively corrupt Microsoft really is!

 

[Brucey]

This is all HORRIBLE! They are NOT at a size disadvantage. It's times like this where we're all reminded on just how creatively corrupt Microsoft really is!

They are massively bloated and full of managers defending their own silos. No way they have what it takes to be agile like a startup. They've been gobbling up the competition for decades and are incapable of any actual creativity.

 

[StereoVsn]

Sadly no shit. Talked with a few folks at Microsoft, they all have the same sentiment that more layoffs are coming. One team's slogan is "10X yourself with AI!!!"

And "amazingly" enough and totally coincidentally with MS adopting more and more AI, their code releases have been full of bugs and errors for last couple of years. This is on their bread and butter M365 and Azure side, not to mention Windows OS.

I guess firing QA, firing devs, using customers as beta testers and reducing support staff is totally great. Nadella is playing with fire because a lot of Enterprise customers are not very happy. It's just other options also suck (Amazon, Oracle, Google), but at least on AWS and Google side they are starting to look more appealing.

 

[Kacho]

 

[StereoVsn]

I've been using Grok pretty much my entire trip in Prague, hey Grok I'm at X location, find me a top rated restaurant that does Y within walking distance... Hey Grok I'm at the Castle, give me some cool facts to tell the kids.. etc etc it definitely has its uses and sure as shit bates using Google

Latest Google Gemini Pro release a much better tool vs Grok objectively speaking. And if you need to code then Anthropic is better.

ChatGPT is a bit meh right now, IMO.

 

[bitbydeath]

 

[chromhound]

I thought it was leaked that there would be more layoffs coming

 

[bitbydeath]

I thought it was leaked that there would be more layoffs coming

They've had big layoffs in January for the past three years, seems to be a trend.

 

[AmuroChan]

This is all very ironic because just a few years ago the tech ppl were telling the non-tech ppl whose jobs were being phased out to #learntocode. Now these very jobs are the ones that are being phased out at a rate that's going to make most coders irrelevant in a few years.

 

[Saber]

To the surprise of absolute no one. The only thing that would surprise me is that if there aren't any more layoffs and studios closures.

 

[Gameplay Gods Bless]

Time to kill Xbox division

Just sell it to Netflix :x

 

[wolffy66]

These companies are gonna sacrifice any and everything for AI. Its hard to describe just how all in the US on AI. Its gonna make or break huge corporations imo

 

[Cyberpunkd]

I've been using Grok pretty much my entire trip in Prague, hey Grok I'm at X location, find me a top rated restaurant that does Y within walking distance...

So kinda like Yelp just slightly faster and a decade late?

 

[Minari]

Doubt anyone gives a flying fuck about Microsoft in the year of the lord 2025.

 

[bender]

I've been using Grok pretty much my entire trip in Prague, hey Grok I'm at X location, find me a top rated restaurant that does Y within walking distance... Hey Grok I'm at the Castle, give me some cool facts to tell the kids.. etc etc it definitely has its uses and sure as shit bates using Google

Sir, this is Arby's a Microsoft thread.

 

[Windle Poons]

Ask ChatGPT see what it thinks.

 

[Mayar]

Ask ChatGPT see what it thinks.

EverydayBeast - People here need your wisdom.

 

[StereoVsn]

This is all very ironic because just a few years ago the tech ppl were telling the non-tech ppl whose jobs were being phased out to #learntocode. Now these very jobs are the ones that are being phased out at a rate that's going to make most coders irrelevant in a few years.

"Tech people" weren't telling anyone to "learn to code" since that was clearly a dumb thing to imagine except for a small number of folks.

Those were political statements when excusing loss of manufacturing jobs as a result of letting China into WTO and opening up completely to imports. Thanks Clinton, Bush, Obama.

Now, if we could replace Congress with AI, that would only be an improvement.

 

[PeteBull]

Nutella when deciding to fire another 10k of MS employees:

 

[RCX]

MS have actual employees?

I thought it was just a hollow behemoth staffed by contract and sub-contract workers?!

"While speaking with Mathias Dpfner, CEO of Axel Springer, the executive admitted that he spends of of his weekends learning about how startups build and develop products."

Fucking nerd.

 

[diffusionx]

The term "scientist" is used quite loosely in the context of "computer scientist", I can assure you.

This is the best encapsulation of AI I have seen

 

[Mownoc]

I think everyone is expecting more major layoffs at MS before the fiscal year ends.

 

[DeepEnigma]

Sounds ripe for another layoff party concert for the execs in Davos.

 

[AmuroChan]

Now, if we could replace Congress with AI, that would only be an improvement.

That's the plot in PsychoPass. Great series.

 

[Horseganador]

We'll see in January-February which games get cancelled or which studios close.

 

[StereoVsn]

What's also totally coincidental and absolutely not hypocritical is MS just announced a $17 billion add-on to their already $3billion India expansion.

Yet somehow the company size is detrimental and magically the jobs that are making the company less nimble in US will be totally fine in India.

https://www.reuters.com/business/microsoft-invest-more-than-5-billion-canada-over-next-two-years-2025-12-09/

If Trump admin is serious about US jobs, outsourcing is something they should be seriously looking at.

IMO, H1Bs (reformed so employees can move) are much better for US vs outsourcing.

 

[diffusionx]

Copilot is a total piece of shit. I almost put information I got from a Copilot query in a contract, but I didn't trust it, tried to research it on my own, and found no basis or evidence from the information it presented me.

It's crazy that they are expecting us to use this and claiming it's the future. And I don't think Copilot is a piece of shit because Microsoft is too big, it's a piece of shit because Microsoft is a piece of shit company that sucks.

What's also totally coincidental and absolutely not hypocritical is MS just announced a $17 billion add-on to their already $3billion India expansion.

Yet somehow the company size is detrimental and magically the jobs that are making the company less nimble in US will be totally fine in India.

https://www.reuters.com/business/microsoft-invest-more-than-5-billion-canada-over-next-two-years-2025-12-09/

If Trump admin is serious about US jobs, outsourcing is something they should be seriously looking at.

IMO, H1Bs (reformed so employees can move) are much better for US vs outsourcing.

really shocked that Satya Nadella is prioritizing India over American workers

The question is how does America "win" the AI race when "American" companies are putting all their investments overseas?

Aat some point the total incoherence of the American political and business class will bring it all down.

 

[Idleyes]

Can we skip to the part where we get the recorded phone call of a sobbing shareholder devastated that the new AI CEO replaced the human one and is now using its massive computing power to personally dismantle the entire investment class?

 

[Themacabre]

I've been using Grok pretty much my entire trip in Prague, hey Grok I'm at X location, find me a top rated restaurant that does Y within walking distance... Hey Grok I'm at the Castle, give me some cool facts to tell the kids.. etc etc it definitely has its uses and sure as shit bates using Google

How much are you paying for that?

 

[mckmas8808]

They are massively bloated and full of managers defending their own silos. No way they have what it takes to be agile like a startup. They've been gobbling up the competition for decades and are incapable of any actual creativity.

But they are Microsoft. They aren't a startup and shouldn't even try to act like one.

 

[UltimaKilo]

But they are Microsoft. They aren't a startup and shouldn't even try to act like one.

They're not nimble and they're full of middle managers. Middle management is the death of a company.

Apple was very good for a long time at avoiding this.

 

[StereoVsn]

They're not nimble and they're full of middle managers. Middle management is the death of a company.

Apple was very good for a long time at avoiding this.

They have let go (and will fire more) a lot of devs, support engineers , qa engineers and more. It's a myth that these are mostly middle managers.

And hell, if you want the company to run properly you need managers, once employee to manager gets to a certain point , projects start suffering.

 

[ByWatterson]

If Nadella said the weather is nice today, you can be sure that means Microsoft is about to lay off millions.

 

[DeepEnigma]

They have let go (and will fire more) a lot of devs, support engineers , qa engineers and more. It's a myth that these are mostly middle managers.

And hell, if you want the company to run properly you need managers, once employee to manager gets to a certain point , projects start suffering.

And we've been seeing that side effect from them in gaming for over a decade now.

Even their OS is a suffering and bugged out broken mess.

 

[StereoVsn]

And we've been seeing that side effect from them in gaming for over a decade now.

I have been "experiencing" this from the Enterprise side. Their release quality has gone down tremendously, outages went up and support has gotten shittier.

 

[SEGAvangelist]

Nadella whines too much.

 

[FIREKNIGHT2029]

The real disadvantage at MS is ironically the idiots like Satya at the top positions not the hardworking employees.

This sucks as it means more layoffs coming soon.

 

[nowhat]

I have been "experiencing" this from the Enterprise side. Their release quality has gone down tremendously, outages went up and support has gotten shittier.

Admittedly, I only run Windows in a VM, and begrudgingly so when it is absolutely necessary for some legacy application. But I find it absolutely insane that there are these major updates ($yearH$half), that have public betas and such way in advance. And almost without exception, it's still a shitshow whenever said update goes live. I'd blame this on replacing QA employees with AI, but it started much before this current AI craze.