Competition in technology is natural and healthy, as it pushes companies to innovate faster and build better products for users.
Industry leadership keeps changing over time, showing that no company stays dominant forever and that rivalry helps prevent complacency.
The tech sector is expected to grow its role in the global economy, creating opportunities for many companies rather than producing just a few winners.
Microsoft CEO Satya Nadella says the global race around artificial intelligence does not have to produce clear winners and losers. Speaking on the ‘All In’ podcast recorded in Davos, Nadella said competition is natural and even healthy for the industry. He stressed that the new rivals force companies to improve rather than slow down. He also reflected on his early years at Microsoft, when another software company was seen as an existential threat for Microsoft. That experience, he said, shaped his belief that markets evolve and leaders change. According to Nadella, the focus should remain on building useful products for customers instead of obsessing over rivals. He also stressed that growth across the sector can lift many players at the same time.
SurveyNadella said competition has always been part of the technology business and will continue to shape its future. He then went ahead and said that when he joined Microsoft in 1992, Novell, which was a Utah-based software and service company, was one of the biggest competitors to Microsoft.
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However, he later added that Novell’s influence faded around the late 1990s, and it was later acquired in 2011. Which he believes is a reminder that dominance in the industry rarely lasts forever. Nadella said these cycles help companies stay sharp and prevent complacency.
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Looking ahead, Nadella expects the technology sector to play an even larger role in the global economy. He said its share of economic output is likely to grow over the next five years, creating opportunities for many firms, not just a few giants. This, he believes, makes the current period intense but far from destructive.
Even the past industry leaders have made such claims, like Bill Gates, who once described competition as essential for progress, saying strong rivals keep companies alert and ambitious. Former Apple chief Steve Jobs also shifted his thinking, arguing that success should be measured by a company’s own health rather than the failure of others.
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Lastly, Nadella said that Microsoft now follows a similar path, and instead of treating every company as an enemy, the firm tries to understand what customers truly need and deliver on that promise. In his view, that approach allows competition to coexist with growth, proving that the race does not have to be a zero-sum game.
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Bhaskar Sharma
Bhaskar is a senior copy editor at Digit India, where he simplifies complex tech topics across iOS, Android, macOS, Windows, and emerging consumer tech. His work has appeared in iGeeksBlog, GuidingTech, and other publications, and he previously served as an assistant editor at TechBloat and TechReloaded. A B.Tech graduate and full-time tech writer, he is known for clear, practical guides and explainers. View Full Profile
