After OpenAI’s code red, Microsoft CEO Satya Nadella enters into founder mode to beat AI rivals

OpenAI recently went into a code red mode after Google released Gemini 3. Now, it seems like the pressure is being felt across the tech industry, especially at Microsoft. As competition in AI grows, Microsoft CEO Satya Nadella has stepped into what is described as “founder mode” to make sure the company stays ahead.

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Over the past year, Nadella has reshaped Microsoft’s top leadership team. The tech giant hired Jay Parikh, the former head of engineering at Meta. Nadella also promoted some senior executives, such as commercial chief Judson Althoff and LinkedIn chief executive Ryan Roslansky, whose platform is owned by Microsoft.

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Current and former Microsoft executives say these decisions show Nadella’s desire to move faster, reports Firstpost. The goal is to improve AI-powered software and strengthen coding tools. Companies like Amazon and Google, once seen as behind in AI, have made significant advances in infrastructure and model development.

“Satya is in ‘founder mode’,” said Dee Templeton, Microsoft’s deputy chief technology officer, using a term popularised by Silicon Valley investor Paul Graham to describe a more hands-on leadership approach.

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Microsoft’s early AI advantage came from its $14bn investment in OpenAI, which gave it access to ChatGPT’s technology and priority use of powerful data centres. That partnership helped Microsoft move quickly while others were still experimenting.

However, the relationship is changing. After a restructuring of the partnership with OpenAI in October, Microsoft gave up exclusive rights to host OpenAI’s data centre needs. In the longer term, the company is also expected to lose exclusive access to OpenAI’s research and models in the early 2030s.

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Ayushi Jain

Ayushi works as Chief Copy Editor at Digit, covering everything from breaking tech news to in-depth smartphone reviews. Prior to Digit, she was part of the editorial team at IANS. View Full Profile