Microsoft CEO Satya Nadella discusses building seven in-house AI models from scratch and positioning Microsoft as a platform for enterprise AI

Nadella released seven new models built from ground up with clean lineage, designed to allow enterprises to continuously improve their own AI systems without relying solely on frontier models from external partners.

Microsoft is developing what Nadella calls a 'multi-tenant learning system' — a platform where companies can build their own 'hill-climbing machine' (a system that continuously improves through feedback) using token capital alongside human capital.

Nadella emphasized that Microsoft's competitive advantage lies in being a trusted platform provider rather than competing directly on frontier models, and that the company has five years of access to OpenAI IP to optimize its approach during the transition.