Microsoft CEO questions AI’s real-world economic value amid industry hype
NEW YORK, UNITED STATES — Satya Nadella, CEO of Microsoft, delivered a sobering assessment of artificial intelligence’s (AI) economic value during a recent podcast interview, challenging industry optimism while acknowledging his company’s multibillion-dollar bets on the technology.
His remarks highlight growing tensions between AI’s speculative potential and its measurable real-world impact.
Nadella dismisses AGI benchmarks as “nonsensical”
During an appearance on Dwarkesh Patel’s podcast, Nadella criticized the industry’s fixation on achieving artificial general intelligence (AGI), calling self-proclaimed milestones “nonsensical benchmark hacking.”
Instead, he argued that AI should be evaluated through tangible economic growth. “The real benchmark is: the world growing at 10 percent,” he said, emphasizing that productivity gains and accelerated GDP growth should define success.
His critique comes despite Microsoft’s $12 billion investment in OpenAI, the creator of ChatGPT, and its collaboration on projects like the $500-billion Stargate initiative with U.S. President Donald Trump.
Economic reality check
Despite claims that AI could mirror the transformative impact of the Industrial Revolution, global growth remains stagnant. “When [productivity] happens, we’ll be fine as an industry,” he said, tacitly admitting current tools fall short.
Chinese startup DeepSeek recently demonstrated its AI model, R1, could match competitors’ capabilities at a fraction of the cost, triggering a $1 trillion industry selloff. Meanwhile, technical flaws—such as AI “hallucinations” and cybersecurity vulnerabilities—continue to limit adoption in critical sectors.
Contradictions in Microsoft’s strategy
The company has doubled down on OpenAI, defended CEO Sam Altman against criticism from Elon Musk, and pledged $80 billion to Stargate. “All I know is I’m good for my $80 billion,” Nadella told CNBC last month, dismissing concerns about funding gaps.
This duality reflects the industry’s broader dilemma: balancing long-term bets on AI’s potential with mounting pressure to demonstrate short-term value. As Nadella put it, “The proof is in the pudding”—a nod to the urgent need for AI to move beyond theoretical promise to practical, scalable solutions.
