Microsoft CEO Satya Nadella Welcomes Intense AI Rivalry, Predicts Tech's GDP Share Will Rise

Microsoft Corp. (NASDAQ:MSFT) CEO Satya Nadella said the fierce competition in the AI sector is beneficial and that the technology industry will continue to grow as a share of the U.S. economy.

AI Competition Is Healthy, Nadella Says

On Wednesday, Nadella spoke during a recorded appearance on the "All-In" podcast in Davos, describing the current AI landscape as "pretty intense," but not necessarily negative.

He said the influx of new competitors every decade keeps Microsoft "fit," and he welcomed the pressure as a way to stay innovative.

"The way I always think is it's always helpful when you have a complete new set of competitors every decade because that keeps you fit," Nadella said.

He added, "It's a pretty intense time. I'm glad there's the competition."

Nadella Predicts Tech's Economic Role Will Expand

Nadella referenced Microsoft's early days, recalling that when he joined the company in 1992, Novell was considered the "big, existential competitor" at the time.

Novell later lost its dominant position and was acquired in 2011.

He also framed the competition as part of a broader economic trend, saying technology's role in the economy is likely to expand.

"At the end of the day, when I look at it as a percentage of GDP, five years from now, where will tech be? It will be higher," he said.

Nadella said Microsoft's strategy is to focus on what customers want rather than treating every company as a rival, a philosophy he contrasted with the competitive posture advocated by entrepreneur Peter Thiel.

AI Race Intensifies: Alibaba, Google, Cuban Warn Of Bubble

Earlier, Alibaba Group Holding Ltd. (NYSE:BABA) shares surged after reports that China might allow limited imports of Nvidia Corp. (NASDAQ:NVDA) H200 AI chips, though the gains later eased.

Nvidia had tightened H200 sales to China, while regulators considered restrictions and domestic-chip requirements.

Alibaba was reported to be seeking over 200,000 H200 units.

Alphabet Inc.‘s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google executives revealed the company needed to double AI serving capacity every six months to keep pace with demand.

Despite raising capital spending, Google said it would not dramatically increase spending in 2026, focusing instead on building more efficient infrastructure.

CEO Sundar Pichai called 2026 an "intense" year for AI competition.

Mark Cuban compared the AI race to the 1990s search-engine boom, suggesting it could end with one dominant player and warning that massive spending could create a bubble.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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