Microsoft CEO Nadella reportedly enters "Founder Mode" to keep pace with AI rivals Amazon, Google, and Anthropic

Microsoft CEO Satya Nadella has reportedly entered "founder mode." According to the Financial Times, Nadella has shaken up Microsoft's management to keep pace with Amazon, Google, and startups like Anthropic. "Satya is trying to demonstrate a sense of urgency," one executive said. "The goal is to get out of some of the structures that exist and make the route to him easier."

Nadella has brought in several new executives, including former Meta technology chief Jay Parikh. Mustafa Suleyman, co-founder of Google Deepmind, now leads Microsoft's in-house AI development with his own budget and salary structure. The move has created internal friction, but Microsoft is accepting that to stay competitive for AI talent.

Microsoft remains strong overall, especially thanks to its Azure cloud AI services, but faces tough challenges ahead. The company will lose exclusive rights to OpenAI's research and models in the early 2030s, and OpenAI is no longer required to use Microsoft's data centers. Meanwhile, Copilot's 150 million users trail Google's Gemini (650 million) and ChatGPT (800 million). Nadella has reportedly already stepped in to influence development directly.