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Microsoft Intensifies AI Overhaul as Nadella Tells Leaders to Commit or Leave

New internal directives, forums, leadership moves signal an urgent shift to AI‑centric decision‑making across Microsoft.

Overview

  • Business Insider reports that Satya Nadella is framing AI as both an existential threat and a generational opportunity, pushing a company‑wide rethink of how Microsoft operates.
  • Nadella launched a weekly AI accelerator meeting and a Teams channel that elevate front‑line technical voices to speed experimentation and cut top‑down gatekeeping.
  • New marching orders urge senior leaders to act like individual contributors, with a shift toward an AI‑driven “production function” that changes how software is built and scaled.
  • Judson Althoff was promoted to lead Microsoft’s commercial business, a move intended to free Nadella to focus on datacenter buildout, systems architecture, AI science, and product innovation.
  • Insiders say longtime executives Rajesh Jha and Charlie Bell may be weighing retirement, though spokesperson Frank Shaw says Microsoft does not expect near‑term changes to its senior leadership team.