Microsoft CEO Sacha and Adela who joins us now live Satcha. Obviously, it's been a very fast moving and dramatic last seventy two to forty eight hours, And I want to start with the state of play. Where are we now? Open ai says it's hired a new CEO. We're reporting their efforts to get Sam Altman back. Tell us where things stand?

Microsoft CEO Sacha and Adela who joins us now live Satcha. Obviously, it's been a very fast moving and dramatic last seventy two to forty eight hours, And I want to start with the state of play. Where are we now? Open ai says it's hired a new CEO. We're reporting their efforts to get Sam Altman back. Tell us where things stand?

Well, first, for all, Havan, it's great to be with you. You know, on Friday morning, we were very excited, committed and confident in our innovation roadmap to bring this next generation of AI to our customers. And we feel fantastic and capable of doing that. And we were partnered with open ai, and we were partnered with Sam. And that's exactly where I am on Monday afternoon, if you will, because we think that we can, you know, we are leading in this next generation of AI technology. We continue to be committed to open Ai, and we continue to be committed to Sam and Greg and the team in respect you where they are. And you know, I think about Sam has chosen multiple times now to work with us, and that's fantastic to see. And I think the real thing is that the capability that Microsoft has across the tech stack is what attracts great people like Sam, you know, and people like Sam and you know, innovators like Sam when it comes to ai to come to us, and we are thrilled about it.

Well, first, for all, Havan, it's great to be with you. You know, on Friday morning, we were very excited, committed and confident in our innovation roadmap to bring this next generation of AI to our customers. And we feel fantastic and capable of doing that. And we were partnered with open ai, and we were partnered with Sam. And that's exactly where I am on Monday afternoon, if you will, because we think that we can, you know, we are leading in this next generation of AI technology. We continue to be committed to open Ai, and we continue to be committed to Sam and Greg and the team in respect you where they are. And you know, I think about Sam has chosen multiple times now to work with us, and that's fantastic to see. And I think the real thing is that the capability that Microsoft has across the tech stack is what attracts great people like Sam, you know, and people like Sam and you know, innovators like Sam when it comes to ai to come to us, and we are thrilled about it.

You incredibly quickly hired Sam as well as Greg. We are hearing that Sam wants to return. Investors want him to return to open Ai. How would you feel about that?

You incredibly quickly hired Sam as well as Greg. We are hearing that Sam wants to return. Investors want him to return to open Ai. How would you feel about that?

Yeah, as I said, we really want to partner with open Ai and we want to partner with Sam. And so in respect you where Sam is, He's working with Microsoft and that is the case on Friday, and that'll be that's the case today and we will I absolutely believe that will be the case tomorrow.

Yeah, as I said, we really want to partner with open Ai and we want to partner with Sam. And so in respect you where Sam is, He's working with Microsoft and that is the case on Friday, and that'll be that's the case today and we will I absolutely believe that will be the case tomorrow.

So what are the conversations you've had with open AI's current board from their perspective, where do things stand? And have you talked with Emmett Sheer, the new interim CEO.

So what are the conversations you've had with open AI's current board from their perspective, where do things stand? And have you talked with Emmett Sheer, the new interim CEO.

Yeah, I've had conversations with Emmett, and again it's the same thing. There's no real difference there from where we were when we were working with Mira and she was interim CEO, when Sam was CEO and Emmett. So my message to them, Emmett is very clear, which is, Hey, look, we remain very very committed to open ai and it's mission and it's sort of roadmap, and they can count on us. And then, as I said, we also are very committed to Sam and Greg and team that want to join us. If they're not at open ai or anyone else who's at open ai wants to go somewhere else, we want them to come to Microsoft and continue to work here and win partnership with open ai.

Yeah, I've had conversations with Emmett, and again it's the same thing. There's no real difference there from where we were when we were working with Mira and she was interim CEO, when Sam was CEO and Emmett. So my message to them, Emmett is very clear, which is, Hey, look, we remain very very committed to open ai and it's mission and it's sort of roadmap, and they can count on us. And then, as I said, we also are very committed to Sam and Greg and team that want to join us. If they're not at open ai or anyone else who's at open ai wants to go somewhere else, we want them to come to Microsoft and continue to work here and win partnership with open ai.

To your knowledge, why was Sam fired? And to your knowledge was he involved in any wrongdoing? Has the board given you a reason?

To your knowledge, why was Sam fired? And to your knowledge was he involved in any wrongdoing? Has the board given you a reason?

As far as I'm concerned, You know, we were, as I said, we were very confident in Salmon his leadership team. I've not been told about anything you know, they published internally at open ai that there is not that the board has not talked about anything that Sam did other than some breakdown in communications. And you know, I'm not directly and was told by anyone from their board about any issues. And so therefore I remain confident in Sam and his leadership and capability. And that's why you know, we want to welcome him to Microsoft.

As far as I'm concerned, You know, we were, as I said, we were very confident in Salmon his leadership team. I've not been told about anything you know, they published internally at open ai that there is not that the board has not talked about anything that Sam did other than some breakdown in communications. And you know, I'm not directly and was told by anyone from their board about any issues. And so therefore I remain confident in Sam and his leadership and capability. And that's why you know, we want to welcome him to Microsoft.

Now. We understand that to support a return of Sam momon too open Ai. Microsoft wants some changes to the board, to governance to its overall contract with open ai, so something like this never happens. Again, what specifically are you looking for, for example, would you want to board see and if not, what else?

Now. We understand that to support a return of Sam momon too open Ai. Microsoft wants some changes to the board, to governance to its overall contract with open ai, so something like this never happens. Again, what specifically are you looking for, for example, would you want to board see and if not, what else?

Yeah, I mean I think we definitely will want some governance changes.

Yeah, I mean I think we definitely will want some governance changes.

So then you know, you know, surprises are bad and we just want to make sure that things are done in a way that will allow.

So then you know, you know, surprises are bad and we just want to make sure that things are done in a way that will allow.

Us to continue to partner.

Us to continue to partner.

Well that's about it, right, You know, this idea that somehow, you know, suddenly changes happen without being you know, in the loop is not good. And we will definitely ensure that some of the changes that are needed to happen and we continue to be able to go along on the partnership with open Ai.

Well that's about it, right, You know, this idea that somehow, you know, suddenly changes happen without being you know, in the loop is not good. And we will definitely ensure that some of the changes that are needed to happen and we continue to be able to go along on the partnership with open Ai.

So how are you envisioning this role with the sort of you know, advanced AI team that Sam and Greg would be joining and leading. Can you explain that? And are they actually Microsoft employees right now? Like who do they work for?

So how are you envisioning this role with the sort of you know, advanced AI team that Sam and Greg would be joining and leading. Can you explain that? And are they actually Microsoft employees right now? Like who do they work for?

Yeah?

Yeah?

So they're all in the process of joining, and yes, I mean the thing is, you know, we have a ton of AI expertise in this company. You know, in fact, at our IGNITE conference last week. We talked about all of the great work open aiyes doing and on Azure and all the models and tools that we built around it. And we also talked about all the open source models that are on Azure from you know, Llama and miss Stral and Jazz and everything you and then also you know, in fact, not only are we leaders in LLLMS in partnership with open Ai, but we're also leaders in SLMs or the small language models with five and we talked about that, which is all developed by Microsoft Research. So what we am excited about is sort of creating another team that's really going to have high ambition on leading edge advanced day I work that Sam and Greg are excited about. This is something that you know, we've talked a lot about with them. You know, what happens in twenty five, what happens in thirty What do we do to advance both the system side the science side.

So they're all in the process of joining, and yes, I mean the thing is, you know, we have a ton of AI expertise in this company. You know, in fact, at our IGNITE conference last week. We talked about all of the great work open aiyes doing and on Azure and all the models and tools that we built around it. And we also talked about all the open source models that are on Azure from you know, Llama and miss Stral and Jazz and everything you and then also you know, in fact, not only are we leaders in LLLMS in partnership with open Ai, but we're also leaders in SLMs or the small language models with five and we talked about that, which is all developed by Microsoft Research. So what we am excited about is sort of creating another team that's really going to have high ambition on leading edge advanced day I work that Sam and Greg are excited about. This is something that you know, we've talked a lot about with them. You know, what happens in twenty five, what happens in thirty What do we do to advance both the system side the science side.

And that's the thing that we will be pushing on.

And that's the thing that we will be pushing on.

Now. Many folks I'm speaking with don't see Sam as a sort of big tech company guy. He has all of these side product projects that you know, we've already heard about. We've reported on new projects. Would he be able to pursue these side projects while being employed by Microsoft?

Now. Many folks I'm speaking with don't see Sam as a sort of big tech company guy. He has all of these side product projects that you know, we've already heard about. We've reported on new projects. Would he be able to pursue these side projects while being employed by Microsoft?

Yeah, I'm sure you know, Like you know, Sam has got broad interests in broad investments and so and we'll definitely, you know, work through the governance aspects of it. But most importantly, I think you would want to only work at Microsoft if he wants to spend his full time time on really pursuing the mission, just like how he were spending his time on Open AI. And so that's kind of the idea behind having him lead this advanced research team around AI with Greg and others.

Yeah, I'm sure you know, Like you know, Sam has got broad interests in broad investments and so and we'll definitely, you know, work through the governance aspects of it. But most importantly, I think you would want to only work at Microsoft if he wants to spend his full time time on really pursuing the mission, just like how he were spending his time on Open AI. And so that's kind of the idea behind having him lead this advanced research team around AI with Greg and others.

And you know, that's an exciting thing for us to look forward to.

And you know, that's an exciting thing for us to look forward to.

I'm curious just your reaction to you know, the last three days of events. Are you now more concerned than ever about AI safety? Given we've seen clearly how fragile these institutions are.

I'm curious just your reaction to you know, the last three days of events. Are you now more concerned than ever about AI safety? Given we've seen clearly how fragile these institutions are.

It's a great point.

It's a great point.

I mean, the thing that I think, in some sense, I've always felt that we should think about the unintended consequences of any great advances in technology from day one, versus dealing with them later. So in some sense I welcome this dialogue, if you will, of safe and safety first, even in technology and technological development.

I mean, the thing that I think, in some sense, I've always felt that we should think about the unintended consequences of any great advances in technology from day one, versus dealing with them later. So in some sense I welcome this dialogue, if you will, of safe and safety first, even in technology and technological development.

Right.

Right.

I mean that's I think in some sense it should be celebrated that we as a tech industry have gotten to a place where we don't think of this as a trade off, but we think about this as two considerations that are both first class. Right. One is how do we build technology so that everybody in the world can have a doctor an X that they can reach, or a tutor or you know, a rural farmer in India has more agency because of technology that was developed in the West Coast of the United States a few months earlier. These are unbelievable things that democratize access on one side, but on the other side, being grounded on the here and now harms right, whether it's election interference or deep fakes or bias or bioterrorism and having the guardrails against it or even some of the you know, AI take off existential risks and the alignment research that is required. So I think that there is a real robust dialogue that's happening, which is and real work. Like when I think about Microsoft, we have done, in fact, some of the biggest most work around AI alignment, AI safety guardrail. So for example, even the open source models we launched last week all have benefit from all the godrail work we did around open ai models.

I mean that's I think in some sense it should be celebrated that we as a tech industry have gotten to a place where we don't think of this as a trade off, but we think about this as two considerations that are both first class. Right. One is how do we build technology so that everybody in the world can have a doctor an X that they can reach, or a tutor or you know, a rural farmer in India has more agency because of technology that was developed in the West Coast of the United States a few months earlier. These are unbelievable things that democratize access on one side, but on the other side, being grounded on the here and now harms right, whether it's election interference or deep fakes or bias or bioterrorism and having the guardrails against it or even some of the you know, AI take off existential risks and the alignment research that is required. So I think that there is a real robust dialogue that's happening, which is and real work. Like when I think about Microsoft, we have done, in fact, some of the biggest most work around AI alignment, AI safety guardrail. So for example, even the open source models we launched last week all have benefit from all the godrail work we did around open ai models.

So throughout the reporting process, we've heard, you know, concerns about potential regulatory issues and of course the power that Microsoft already has, the power that Microsoft has in Ai. Have you, on your end work through all the potential legal issues at play here? I mean I just spoke to one investor who said, you know, they're considering suing open Ai. Like, you know, there's a lot of things that have yet it seems to be figured out. And do you know what Microsoft's legal liability is and open AI's legal liability is given your significant investment there.

So throughout the reporting process, we've heard, you know, concerns about potential regulatory issues and of course the power that Microsoft already has, the power that Microsoft has in Ai. Have you, on your end work through all the potential legal issues at play here? I mean I just spoke to one investor who said, you know, they're considering suing open Ai. Like, you know, there's a lot of things that have yet it seems to be figured out. And do you know what Microsoft's legal liability is and open AI's legal liability is given your significant investment there.

Yeah, Look, I'm I'm most focused on and most excited about our.

Yeah, Look, I'm I'm most focused on and most excited about our.

Ability to continue to innovate Emily.

Ability to continue to innovate Emily.

I mean, I led the lawyers sort of figured out what liabilities are. But I think we have all the capability, all the IP and all the things that we need in order to continue to essentially control our destiny here so that we can continue.

I mean, I led the lawyers sort of figured out what liabilities are. But I think we have all the capability, all the IP and all the things that we need in order to continue to essentially control our destiny here so that we can continue.

To innovate on behalf of our customers.

To innovate on behalf of our customers.

That's what matters, That's what makes Microsoft Microsoft, and will continue to do what we need to do.

That's what matters, That's what makes Microsoft Microsoft, and will continue to do what we need to do.

Okay, so quick, last question this is today, Who's going to be CEO of open Ai tomorrow. You tell me.

Okay, so quick, last question this is today, Who's going to be CEO of open Ai tomorrow. You tell me.

I will leave it to open Ai and it's bored, all right.

I will leave it to open Ai and it's bored, all right.

Sacha Adella, CEO of Microsoft.

Sacha Adella, CEO of Microsoft.

Thank you.

Thank you.

I know you've had a really busy few days. Appreciate you taking the time to talk to us.

I know you've had a really busy few days. Appreciate you taking the time to talk to us.