During a wide-ranging discussion at the World Economic Forum 2026, Nadella said that while the competition with fellow tech giants like Google, Meta and other is fiercer than ever, the expanding role of technology in the global economy makes this a “blessed” time for the industry. His comments came amid a “pretty intense” era led by artificial intelligence (AI) and shifting global markets.“It’s a pretty intense time. I mean, so the way I always think is, it’s always helpful. When you have a complete new set of competitors every decade, because that keeps you fit,” Nadella said. Reflecting on his 34-year journey at Microsoft, Nadella dismissed the idea that the AI race is a zero-sum game, instead pointing to a future where tech’s share of the world’s GDP will only continue to rise.
Satya Nadella says competition is ‘keeping us fit’
Nadella highlighted that Microsoft’s longevity is rooted in its ability to adapt to new “existential” rivals every decade. He recalled joining the company in 1992 when the primary threat was Novell, further noting that the competition has now changed with its AI rivals“If you think about it, I joined Microsoft in 92 when I had Novell as the big existential competitor. Here we are in 2026, it’s a pretty intense time. I’m glad there’s the competition. It’s, quite honestly, at the end of the day, when I look at it right as a percentage of GDP five years from now, where will Tech be right? It will be higher, so we’re blessed to be in this industry,” the Microsoft CEO added.
CEO Satya Nadella says Microsoft avoiding the ‘Zero-Sum’ trap
While there is a narrative that there’s a winner-takes-all scenario, Nadella insisted that the Total Addressable Market (TAM) tells a different story.“It’s a lot of intense competition, but it’s not so zero-sum, as some people make it out. Oh, it’s getting much bigger, much more. The TAM and it’s just the impact of the stack is going to be so,” Nadella noted.While taking about customer intent, Nadella argued that the key to survival is understanding the “brand permission” a company has with its users.“The question that I always go back to is what’s the brand identity that Microsoft has and the brand permission we have, what customers expect from us,” Nadella noted.
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