Microsoft CEO Satya Nadella launches Frontier Co. to help enterprises build custom, continuously improving AI systems

MSFT putting $2.5B and 6,000 engineers in “Frontier Co”

Now Microsoft, Amazon, OpenAI and Anthropic are all in the Palantir-like deployco business.

A good move for Microsoft to take what they learned from OpenAI and Anthropic and “embrace and extend” in AI like they did in the PC in 1988.

It is in the DNA.

Your move Sam, protect the Rooks.

@satyanadella Token capital's volatility usually kills the compounding effect. Most DAO experiments show that liquidity drains faster than human capital can build.

Microsoft training 6,000 people to install AI at companies tells you the real problem isn't the AI.

It's that businesses don't know how to use it.

Everyone thought you just buy Copilot licenses and productivity jumps. Didn't happen. Companies got stuck testing AI in small pilots that never scaled up.

The AI worked fine. The issue was messy company data, old workflows, and no one owning the rollout.

So Microsoft is doing what IBM and SAP did decades ago: building a giant consulting arm to force adoption by hand.

@satyanadella @elonmusk Will robots take over?

@satyanadella Good stuff! I like the push on enabling companies to leverage and achieve compounding effects with AI.

@satyanadella @elonmusk So I guess this is announcing Microsoft leaving consumer electronics and software. Surface and laptop models eliminated, windows and office no longer, use AI instead. Have to see how this all plays out as I switch to android products

Nah, this isn’t going to make a difference as MS lacks appreciation for industry experts. This company is loaded with engineers but they are clueless as to what to develop and how to resolve business domain-specific issues. I know several good domain experts applied for roles but MS rejected them as they couldn’t figure out where to use them. All this happened recently, so I don’t see any change in overall operations unless MS starts hiring more domain experts and functional business consultants, and fewer gold-crested engineers—as coding is no longer a challenge but understanding the business nerve is.

@satyanadella Satya, I am interested - ideally at the Austin office.

@satyanadella "Every organization builds its own AI capability" is the ambition. The question underneath it is where the knowledge, workflows, and judgment actually live while that learning loop runs.

@satyanadella $IBM does the same, for example . You better concentrate on integrating your soft in major AIs and making it free, rather than joining ai educators which are plenty already. Bad decision.

@pitdesi They are building GTM motions and calling FDE, Palantir FDE is a product strategy.

@satyanadella @elonmusk I feel like Microsoft should play an important role of protecting enterprise data privacy and reminding everyone how their data is being used for training frontier AI.

@satyanadella That is wonderful idea let me tell you details here about how …. Oops the token limit was reached and I cannot complete my planned post. Oh well back to Working at McDonaldos.

@satyanadella Give me that Edge AI laptop right about NOW!

@satyanadella 🥈

@satyanadella If you unironically refer to human beings whose labor your consistently exploit for billions as “human capital” kindly fix yourself a little 12 gauge snack and leave us all alone forever

@satyanadella the smarter the loop gets, the worse it is to have its training data parked in a rented cloud box, which is where verifiable storage earns the job.

@satyanadella @elonmusk @elonmusk With all the AI company vs lab talk what’s one big goal you’re most excited to hit with xAI (or overall) before turning 60? 🚀

@satyanadella @elonmusk