Satya Nadella talks about Microsoft’s new AI strategy. Asks “if you’re [only] a consumer of foundation models…how can you create enterprise value?” In his view, companies should combine their internal IP and tacit knowledge with an AI “hill-climbing machine” (reinforcement learning, custom evals) that is model agnostic. Obviously, he positions Microsoft as a partner because they have already gone through that process (namely by diversifying AI efforts away from only OpenAI). “We built a multi-tenant SaaS application,” Nadella says. “We can turn that into a multi-tenant hill climbing service where the data and the environment and the models and the traces and the outcomes are owned by the company.”