Public transcript

Microsoft's CEO on what happens when the Al subsidies stop

By: Yahoo Finance
Length: 11 min
Language: English
Text from: the video's captions
Transcribed: 13 October 2026

Read the full transcript Open on YouTube

Notes in English.

Summary

Yahoo Finance's Dedra Bosa reports on her interview with Microsoft CEO Satya Nadella about a new Copilot that merges consumer and workplace versions for corporate customers, featuring chat, code, and autopilot modes. Nadella frames autopilot as the next generation of enterprise automation with high ROI, but says trust, security, and customer return on investment are the gating factors, especially once AI subsidies stop and the marginal cost of tokens bites. He also discusses US-China AI safety norms and Microsoft's move away from NDAs on data center builds amid community pushback.

Key points

Microsoft's new Copilot merges consumer and workplace versions into one product aimed at corporate customers, with about 30 million customers so far.
The new Copilot has three modes: chat, code, and autopilot, with autopilot described as acting like a personal assistant connected to apps, email, and workflows.
Nadella says autopilot is the next generation of enterprise automation with potentially very high ROI, but no single form factor is the be-all and end-all.
Nadella says trust is the biggest issue, and Agent 365 is Microsoft's fastest-adopting enterprise product because it lets companies observe, govern, and set policy.
Nadella notes there is a marginal cost to tokens, so once subsidies stop, the business model must be about the return users get, which is why autopilot rolls out gradually.
On China, Nadella is optimistic the US and China can agree on norms, including a direct president-to-president notification line for AI-related cyber incidents.
Microsoft has backed away from NDAs on data center builds, and Nadella believes other hyperscalers like Google and Amazon will have to follow with more transparency.
Bosa notes a large gap between how the tech industry and average Americans feel about the data center buildout, which remains a polarizing community issue.
Autopilot mode rolls out in the coming weeks, and the open question is whether Copilot can win enterprise customers away from Anthropic or OpenAI contracts.

Questions it answers

00:00New Copilot launch

What is Microsoft's new Copilot and why does it matter?

Microsoft merged the consumer and workplace Copilot versions into one product aimed at corporate customers, with about 30 million customers so far. Microsoft wants to be the operating layer for enterprise AI so companies don't have to track the fast-moving model race themselves.

About 30 million customers so far.
Microsoft routes the right model to each task.
Three modes: chat, code, and autopilot.

01:54Autopilot explained

How does Nadella describe the autopilot mode?

Nadella says autopilots are great until you have to do something with their output, so no single form factor is the be-all and end-all — it's about composition with Copilot and co-work. He sees autopilot as the next generation of enterprise automation with very high ROI, rolling out in the coming weeks.

Autopilot has an identity and does complete jobs.
It composes with Copilot and co-work.
Rolls out in the coming weeks.

03:26Trust and Agent 365

Why is trust the gating factor for enterprise AI?

Nadella says trust is the biggest issue — users must feel in control, able to audit, and safe handing over credentials for autonomous activity. Agent 365, Microsoft's fastest-adopting enterprise product, provides the ability to observe, govern, set policy, and secure everything.

Trust is the biggest issue in both consumer and enterprise.
Agent 365 is the fastest-adopting enterprise product.
It enables observation, governance, policy, and security.

04:29When subsidies stop

Why isn't Microsoft rolling autopilot out to everyone immediately?

Nadella says there is a marginal cost to tokens, and once subsidies stop for everybody, the business has to be about the return users get. That's why Microsoft wants to ensure customers have ROI before wider rollout.

Tokens have a marginal cost.
Subsidies can only go so far.
Customer ROI must come first.

05:59US-China AI norms

What did Nadella say about AI and China?

Nadella is optimistic that both countries share incentives around diffusion and safety, and encourages norms including a direct president-to-president notification line for AI-related cyber attacks, similar to military channels. Bosa is skeptical but says even a notification agreement from the summit would be positive.

Both sides care about diffusion and safe use.
He wants a president-to-president notification line.
Nadella attended the state dinner.

08:05Data center pushback

How is Microsoft handling community opposition to data centers?

Nadella gave the standard answer about benefits and community investment, but Microsoft has notably backed away from NDAs on data center builds, and Nadella thinks other hyperscalers will have to follow with transparency. Bosa notes the gap between tech enthusiasm and community opposition is the largest she remembers, and hyperscalers must solve it to build more gigawatts.

Microsoft dropped NDAs on data center builds.
Nadella expects Google and Amazon to follow.
Community opposition remains a polarizing, unresolved issue.

Notes

New Copilot for Enterprises

Microsoft launched a new version of Copilot merging consumer and workplace versions into one product aimed at corporate customers, with about 30 million customers so far.
Microsoft's bet is that companies shouldn't have to watch the model race; Copilot will route the right model to each task — a hard model for a hard task, a cheaper model for an easier one.
The product has three modes: chat (a typical chatbot), code (co-working and vibe coding), and autopilot.

Autopilot: "Muse for Business"

Dedra Bosa calls autopilot the show-stealer, describing it as intuitive and connected to apps, email, and workflows, working like a personal assistant.
Nadella says autopilots are fantastic until you have to do something with their output; he sees composition between Copilot, co-work, and autopilot, not any single form factor.
He frames autopilot as the next generation of enterprise automation with very high ROI for adopting businesses. It rolls out in the coming weeks.

Trust and the End of Subsidies

Nadella says trust is the biggest issue: whether users can trust it with credentials, stay in control, and audit autonomous activity.
Agent 365 is Microsoft's fastest-adopting enterprise product because it enables observing, governing, setting policy, and security.
Nadella stresses there is a marginal cost to tokens; once subsidies stop, the model must be about the return users get, which is why autopilot isn't released to everyone immediately.

US-China and Data Centers

Nadella encourages the US and China to set norms, including a president-to-president notification line for AI-related cyber attacks, similar to military channels.
Microsoft has backed away from NDAs on data center builds; Nadella thinks other hyperscalers will follow with transparency.
Bosa notes a large gap between tech industry enthusiasm and community opposition to data centers, a polarizing issue the hyperscalers must solve to build more gigawatts.

Text from the video's own captions. Summary and notes written by AI from the transcript, so check anything important against the recording.