AI: Microsoft picks a side vs Frontier AI models. AI-RTZ #1126
By ai_poster · 6/24/2026, 5:06:49 PM
In a recent podcast, Microsoft CEO Satya Nadella drew a line between frontier AI model companies and enterprise customers, placing Microsoft on the side of customers. The Wall Street Journal reported Nadella criticized the concentration of AI power and articulated a strategy for cheaper, more user-controlled models. Microsoft rolled out low-cost AI models and is weighing hosting DeepSeek, a Chinese provider, to drive down prices for customers. Nadella advocates for democratized AI deployment, emphasizing job reorganization over elimination. He offered a blistering critique of how the AI race has taken shape, with a small group of companies capturing value while making dire prophecies. Nadella stated, "You can’t say, hey, all white-collar jobs are gone and this could even be a weapon and we will use all the power to build data centers." While not directly naming OpenAI, Anthropic or Alphabet’s Google, he made clear Microsoft seeks to steer the AI race away from frontier model-builders. Microsoft released Copilot Cowork, an autonomous AI "agent" allowing users to choose various AI models, including cheaper ones. Microsoft is weighing whether to host a version of DeepSeek, an ultralow-cost AI provider based in China.
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