Microsoft CEO Nadella Defended OpenAI Bet Against Gates' Skepticism

Microsoft CEO Satya Nadella revealed that co-founder Bill Gates initially warned the company would "burn" its $1 billion investment in OpenAI. Despite the skepticism in 2019, Nadella pursued the deal, viewing it as a critical entry point into AI infrastructure. That initial bet has since ballooned into a $13 billion commitment, securing Microsoft a 27% stake in OpenAI valued at approximately $135 billion. As of January 2026, the partnership contributed $7.6 billion to Microsoft’s net income. Under revised terms, OpenAI will pay Microsoft 20% of its revenue through 2032 and purchase $250 billion in Azure cloud services, cementing the financial success of the high-risk venture.