Satya Nadella has issued a warning to companies using AI

15 days ago

Microsoft CEO Satya Nadella warns that companies using proprietary AI models pay twice: with money and by handing over valuable proprietary business data.
Nadella argues that enterprises are unknowingly training AI models with sensitive business knowledge, which competitors could never buy, potentially turning model makers into competitors.
He criticizes the hypocrisy of AI labs freely using public data for training while restricting others from studying or 'distilling' their models to create cheaper alternatives.
Nadella suggests companies retain ownership of their data and build proprietary learning environments in the cloud, along with 'orchestration layers' to switch between AI models easily.
Enterprises are increasingly shifting to on-premise open source AI models for cost savings, control, and to avoid data leakage, a trend supported by companies like Solo.io, Vercel, and OpenRouter.

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