Will AI Topple Microsoft?
October 1, 2025
At least one Big Tech leader is less than enthused about AI rat race. In fact, reports Futurism, “Microsoft CEO Concerned AI Will Destroy the Entire Company.” As the competition puts pressure on the firm to up its AI game, internal stress is building. Senior editor Victor Tangermann writes:
“Morale among employees at Microsoft is circling the drain, as the company has been roiled by constant rounds of layoffs affecting thousands of workers. Some say they’ve noticed a major culture shift this year, with many suffering from a constant fear of being sacked — or replaced by AI as the company embraces the tech. Meanwhile, CEO Satya Nadella is facing immense pressure to stay relevant during the ongoing AI race, which could help explain the turbulence. While making major reductions in headcount, the company has committed to multibillion-dollar investments in AI, a major shift in priorities that could make it vulnerable. As The Verge reports, the possibility of Microsoft being made obsolete as it races to keep up is something that keeps Nadella up at night.”
The CEO recalled his experience with the Digital Equipment Corporation in the 1970s. That once-promising firm lost out to IBM after a series of bad decisions, eventually shuttering completely in the 90s. Nadella would like to avoid a similar story for Microsoft. One key element is, of course, hiring the right talent—a task that is getting increasingly difficult. And expensive.
A particularly galling provocation comes from Elon Musk. Hard to imagine, we know. The frenetic entrepreneur has announced an AI project designed to “simulate” Microsoft’s Office software. Then there is the firm’s contentious relationship with OpenAI to further complicate matters. Will Microsoft manage to stay atop the Big Tech heap?
Cynthia Murrell, October 1, 2025
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