Microsoft CEO Satya Nadella says Bill Gates warned him that investing in OpenAI would be like setting $1 billion on fire

Microsoft's CEO, Satya Nadella, recently reflected on the company's initial investment in OpenAI, which many now view as a strategic move in hindsight. Back in 2019, Microsoft committed $1 billion to the fledgling artificial intelligence startup, a decision that was met with skepticism, even from the company's co-founder, Bill Gates. In a candid discussion on a tech-focused YouTube show, Nadella recounted the hurdles faced in securing the investment. "At Microsoft, getting board approval for a billion-dollar investment requires significant justification," he explained. Despite the challenges, he noted that convincing stakeholders of the importance of AI innovation wasn't overly difficult, although the risks were apparent. "Looking back, I didn’t invest a billion dollars expecting it to yield a hundredfold return," Nadella admitted. He shared that Gates had reservations about the investment, cautioning, "You’re going to burn this billion dollars," given that OpenAI was initially structured as a nonprofit. Despite the initial doubts, OpenAI has transformed dramatically since that first investment. The company skyrocketed to fame in November 2022 with the launch of ChatGPT, which quickly garnered widespread attention, gaining a million users within just five days. During a recent DevDay conference, OpenAI's CEO, Sam Altman, highlighted the platform's reach, revealing that over 800 million people utilize ChatGPT on a weekly basis. In a significant restructuring, OpenAI announced the establishment of the OpenAI Group PBC, a new public benefit corporation that will be overseen by its nonprofit arm, the OpenAI Foundation. Following these developments, Microsoft now holds a substantial 27% stake in OpenAI, valued at approximately $135 billion. This investment has proven fruitful for Microsoft, with its shares experiencing an increase of nearly 29% this year alone.