Microsoft CEO Nadella's Annual Letter: Seizing Opportunities to Fully Develop Artificial Intelligence!

Dear shareholders, colleagues, customers, and partners,

We are currently in a time of historic challenges and opportunities. As I write this letter, the world is facing ongoing economic, social, and geopolitical turbulence. At the same time, we have entered a new era of AI that will fundamentally transform the productivity of every individual, organization, and industry worldwide, and help us address some of the most pressing challenges.

On October 16th, Microsoft released its annual financial report for the fiscal year 2023, and as usual, Microsoft CEO Satya Nadella also issued an annual letter to the company's shareholders.

As expected, at the beginning of the letter, Nadella expressed their view on artificial intelligence - a strong belief in AI and a continued commitment to investing in it. He stated that AI "will fundamentally change the production models of every individual, company, and industry on Earth."

Nadella pointed out three things that he firmly believes in for Microsoft's future development:

First, maintaining Microsoft's position as a top-tier commercial cloud provider and gradually expanding into consumer categories, from gaming to professional social networks.

Second, in this platform transformation period, the greatest enterprise value comes from innovation. Microsoft will accelerate investment and expand its leadership position in artificial intelligence, injecting this technology into every layer of the technology stack.

Finally, Microsoft stated that it will continue to adjust its operating leverage to align its cost structure with its revenue growth.

In the letter, Nadella stated that the next generation of artificial intelligence will reshape every software category and every business, including their own:

"After 48 years, Microsoft remains an influential company because we have repeatedly adapted to shifts in technology paradigms, from PC/servers to the internet/network, and then to cloud computing/mobile. Today, as we lead in this new era, we are doing it again."

Nadella believes that two breakthrough technologies, natural language and the "new reasoning engine," are converging and defining this new era of AI, helping Microsoft embark on a new AI era:

"The first is the most universal domain - natural language. The long cycles of computing have been influenced by the pursuit of increasingly intuitive human-machine interfaces, including keyboards, mice, and touchscreens. We believe we have taken the next big step, which is natural language, and will quickly surpass it to understand and comprehend our intentions and the world around us."

"The second breakthrough is the emergence of a powerful new reasoning engine. Over the years, we have digitized everyday life, places, and things, and organized them into databases. But in a world full of data, the scarcest resource is our ability to reason with it. This generation of AI helps us interact with data in new and powerful ways - from completing or summarizing text to detecting anomalies and recognizing images - enabling us to identify patterns and gain insights faster than ever before."

Nadella believes that the opportunity Microsoft needs to seize right now is to provide solutions for every customer and to reconstruct every layer of the technology stack in the AI era.

The full translation is as follows:

Dear shareholders, colleagues, customers, and partners,

We are currently in a time of historic challenges and opportunities. As I write this letter, the world is facing ongoing economic, social, and geopolitical turbulence. At the same time, we have entered a new era of AI that will fundamentally transform the productivity of every individual, organization, and industry worldwide, and help us address some of the most pressing challenges.

On October 16th, Microsoft released its annual financial report for the fiscal year 2023, and as usual, Microsoft CEO Satya Nadella also issued an annual letter to the company's shareholders.

As expected, at the beginning of the letter, Nadella expressed their view on artificial intelligence - a strong belief in AI and a continued commitment to investing in it. He stated that AI "will fundamentally change the production models of every individual, company, and industry on Earth."

Nadella pointed out three things that he firmly believes in for Microsoft's future development:

First, maintaining Microsoft's position as a top-tier commercial cloud provider and gradually expanding into consumer categories, from gaming to professional social networks.

Second, in this platform transformation period, the greatest enterprise value comes from innovation. Microsoft will accelerate investment and expand its leadership position in artificial intelligence, injecting this technology into every layer of the technology stack.

Finally, Microsoft stated that it will continue to adjust its operating leverage to align its cost structure with its revenue growth.

In the letter, Nadella stated that the next generation of artificial intelligence will reshape every software category and every business, including their own:

"After 48 years, Microsoft remains an influential company because we have repeatedly adapted to shifts in technology paradigms, from PC/servers to the internet/network, and then to cloud computing/mobile. Today, as we lead in this new era, we are doing it again."

Nadella believes that two breakthrough technologies, natural language and the "new reasoning engine," are converging and defining this new era of AI, helping Microsoft embark on a new AI era:

"The first is the most universal domain - natural language. The long cycles of computing have been influenced by the pursuit of increasingly intuitive human-machine interfaces, including keyboards, mice, and touchscreens. We believe we have taken the next big step, which is natural language, and will quickly surpass it to understand and comprehend our intentions and the world around us."

"The second breakthrough is the emergence of a powerful new reasoning engine. Over the years, we have digitized everyday life, places, and things, and organized them into databases. But in a world full of data, the scarcest resource is our ability to reason with it. This generation of AI helps us interact with data in new and powerful ways - from completing or summarizing text to detecting anomalies and recognizing images - enabling us to identify patterns and gain insights faster than ever before."

Nadella believes that the opportunity Microsoft needs to seize right now is to provide solutions for every customer and to reconstruct every layer of the technology stack in the AI era.Next-generation AI will reshape every software category and every business, including our own. After 48 years, Microsoft remains an important company because time and time again, we have adapted to the changing technological paradigms, from PC/servers to the internet/network to the cloud/mobile era. Today, we are once again leading this new era of transformation.

In this transformation, our mission has always been to empower every person and every organization on the planet to achieve more. As a company, we believe we can be a force for democratizing this innovative technology and help every country, community, and individual seize opportunities while mitigating risks.

Here are a few examples of what we are already doing:

1. Leading electronic health record providers like Epic are leveraging Azure OpenAI services and Dragon Ambient eXperience Copilot to build various assistive solutions that address some of the biggest challenges in the healthcare industry, including physician burnout.

2. Mercado Libre is using GitHub Copilot to reduce developers' coding time by over 50%. The company is dedicated to promoting e-commerce in Latin America.

3. Mercedes-Benz is using ChatGPT through Azure OpenAI Service to make its in-car voice assistant more intuitive, serving hundreds of thousands of drivers.

4. Lumen Technologies is deploying Microsoft 365 Copilot to help its employees improve work efficiency, enabling them to focus on higher-value activities.

5. Non-profit organization "The Contingent" is using Dynamics 365, Power BI, and Azure to match foster families with children in need, while considering the use of artificial intelligence to expand their work in the United States.

To further advance, we remain committed to three things: First, we will maintain our leadership position in the commercial cloud while innovating in consumer categories such as gaming and professional social networks. Second, we recognize that the greatest enterprise value during this platform shift comes from innovation. We will accelerate investments to embed this technology across various layers of the tech stack, maintaining our AI leadership. Finally, we will continue to drive operational leverage, aligning our cost structure with our revenue growth.

As we make progress on these key initiatives, we achieved unprecedented operational results in the 2023 fiscal year, with revenue reaching $211 billion and operating profit exceeding $88 billion.

Opportunities in the new era of artificial intelligence

The new era of AI brings two major breakthroughs. The first breakthrough is natural language, where the long history of computing is being driven by the constant pursuit of more intuitive human-machine interfaces - keyboards, mice, touch screens, and beyond.We believe that we have taken the next big step - natural language, and will soon surpass it, seeing, hearing, understanding, and grasping our intentions and the world around us.

The second is the emergence of a powerful new reasoning engine. Over the years, we have digitized everyday life, locations, and things and organized them into databases. But in a data-rich world, the most scarce thing is our ability to reason about it. This generation of AI helps us interact with data in new ways - from completing or summarizing text to detecting anomalies and identifying images - to help us identify patterns and gain insights faster than ever before.

These two breakthroughs will unlock tremendous new opportunities. In fact, just last month, we announced our vision for Copilot, a daily AI companion. We are integrating Copilot into our most widely used products and experiences, allowing people to summon its power as an independent application. Just as you launch an operating system today to access applications or use a browser to access websites, we believe you will call on Copilot to perform all these activities and more: shopping, programming, analysis, learning, creating.

As a company, whenever we approach a transformation like this, we do so responsibly. We believe that AI should be as empowering as it is powerful, and we are committed to ensuring that it is built and designed responsibly, with safety in mind from the very beginning.

Our Opportunity

Every customer solution area and every layer of our technology stack will be reimagined for the AI era. This is exactly what we have already begun to do:

Infrastructure

Four years ago, we made our first investment in our AI supercomputer, designed to build the best cloud computing platform for training and inference. Today, our partner OpenAI is using it to support its premier base models and services, including one of the fastest-growing consumer applications - ChatGPT. In addition, industry-leading companies like NVIDIA, as well as AI startups Adept and Inflection, are also using our infrastructure to build their groundbreaking models.

More broadly, organizations continue to choose our general-purpose computing architecture - from the cloud to the edge - to run their mission-critical applications. In the past fiscal year, we have continued to see more cloud migrations to Azure, as the long-term opportunities in cloud computing are still unfolding. And in the area of hybrid cloud computing, we continue to lead with Azure Arc, currently serving 18,000 customers.

Data and AI

Every AI application starts with data, and having a comprehensive data and analytics platform is more important than ever. Our intelligent data platform brings together operational databases, analytics, and governance to enable organizations to create more value and reduce the time spent on data integration. This year, we also launched Microsoft Fabric, which unifies computing, storage, and governance with a disruptive business model.Through Azure AI, we are providing our customers with foundational models as a platform. We offer the best choice of cutting-edge and open models in the industry. In January, we extensively launched Azure OpenAI services, combining advanced models (including ChatGPT and GPT-4) with Azure's enterprise capabilities. Over 11,000 organizations across different industries have applied these advanced models to various scenarios, such as content and code generation. Meta Corporation chose us as their preferred cloud computing partner this summer to commercialize their Llama model series. Additionally, through Azure AI Studio, we provide customers with a complete lifecycle toolchain for training these models with their own data, creating prompt workflows, and ensuring secure deployment and usage of these models.

Numbers and Application Innovation

GitHub Copilot is fundamentally improving developers' productivity, increasing the speed of completing coding tasks by 55%. Over 27,000 organizations have chosen GitHub Copilot for Business, and over 1 million people have used GitHub Copilot to code faster. We have also announced the future software development vision of GitHub Copilot X, which applies the power of AI throughout the software development lifecycle. Overall, GitHub has achieved over $1 billion in annual recurring revenue for the first time in this fiscal year.

We are also applying AI to our low-code/no-code toolchain, helping domain experts in organizations automate workflows, create applications and webpages, build virtual agents, or analyze data through natural language communication using partners in the Power Platform. So far, over 63,000 organizations have used AI capabilities in the Power Platform.

Business Applications

We have brought next-generation AI to employees in different functions and business lines. Using Dynamics 365 Copilot, this tool can collaborate between CRM and ERP systems to reduce tedious tasks such as manual data entry, content generation, and record-keeping.

In fact, our own support agents are using Copilot in Dynamics 365 Customer Service to resolve issues more quickly without seeking assistance from colleagues. Through our supply chain platform, we are helping customers apply AI to predict and mitigate potential disruptions. Additionally, with Microsoft Sales Copilot, salespeople can leverage data in CRM systems, including Salesforce and Dynamics, to close deals more effectively.Overall, Dynamics achieved over $5 billion in revenue in the past fiscal year, with each of our customer experience, service, finance, and supply chain businesses surpassing $1 billion in annual sales.

Industry

In various industries, we are quickly becoming the preferred partner for any organization seeking real value from artificial intelligence. For example, in the healthcare field, we launched DAX Copilot, the world's first fully automated clinical documentation application. This application helps doctors reduce document writing time by half, allowing them to spend more time interacting with patients. Epic will directly integrate it into their electronic health record system.

Additionally, in the retail sector, we have introduced new tools to help companies manage day-to-day operations and digitize physical stores.

Modern Work

We are rapidly evolving Microsoft 365 into an AI-first platform that empowers individuals to enhance creativity and productivity, whether through our existing applications like Office and Teams, or new applications like Designer, Stream, and Loop. Microsoft 365 is designed for today's digitally connected distributed workforce.

This year, we also introduced Microsoft 365 Copilot as a new customer value pillar, combining next-generation AI with business data from Microsoft Graph and Microsoft 365 applications to help people increase productivity and unleash creativity at work. Just last month, I excitedly announced that we will be widely offering Microsoft 365 Copilot to commercial customers later this year.

We continue to see growth momentum in Microsoft Teams, which integrates collaboration, chat, meetings, and calling capabilities. We launched a new version of Teams that delivers twice the performance while reducing memory usage by 50%. We also introduced Teams Premium to meet enterprise demands for AI features like intelligent meeting recaps. In summary, Teams has surpassed 300 million monthly active users this year.

With Microsoft Viva, we have created a new category of employee experience. Viva's Copilot provides leaders with a new way to build high-performance teams that prioritize both productivity and employee engagement. This year, Viva has exceeded 35 million monthly active users.

Security

As the speed and volume of cyber threats continue to increase, security has become a top priority for every organization. Our comprehensive, AI-driven solutions empower defenders with an advantage. With Security Copilot, we combine large-scale language models with domain-specific models that draw from our threat intelligence and 6.5 trillion daily security signals.Aiming to comprehensively improve the efficiency of the Security Operations Center.

Currently, over 1 million organizations rely on our comprehensive, AI-driven solutions to protect their digital assets. Our security business generates annual revenue of over $20 billion, thanks to the protection we provide for various cloud and endpoint platforms.

Search, advertising, and news

The new Bing and Microsoft Edge browsers are reshaping people's daily search and internet habits. These tools combine search, browsing, chat, and AI into a unified experience, offering better search results, more comprehensive answers, a new chat experience, and the ability to generate content. We see these tools as AI assistants on the web.

We are also introducing these groundbreaking features into the enterprise with the launch of Bing Chat Enterprise, which provides commercial data protection and offers a convenient way for any organization seeking immediate access to next-generation AI advantages.

Although still in the early stages of our journey, Bing users have engaged in over 1 billion chats and created over 750 million images in the past year. Edge has achieved market share growth for 9 consecutive quarters.

More broadly, we continue to expand opportunities in advertising. This year, Netflix chose us as its exclusive technology and sales partner for its first ad-supported subscription product, validating the differentiated value we provide to any publisher seeking flexible partnerships and innovation.

LinkedIn

The excitement around AI is creating new opportunities for every functional department - from marketing, sales, service, and finance to software development and security. People are increasingly using LinkedIn to learn, discuss, and enhance their skills. We are using AI to help our members and customers connect with opportunities and leverage the expertise of professionals on the platform. In fact, our AI-driven articles have become the fastest-growing traffic driver on the web.

This fiscal year, LinkedIn's revenue exceeded $15 billion for the first time, demonstrating the platform's importance in helping over 950 million members connect, learn, sell, and recruit.

Gaming

In the gaming industry, we are rapidly executing our ambition to become the preferred platform for people to play high-quality games anytime, anywhere. Through Xbox Game Pass, we are redefining game distribution, play, and viewing. Content is a key driver of service growth, and our content channels have never been stronger. The release of "Starfield" earlier this fall received widespread acclaim, with over 10 million players in the first month, which is incredibly exciting.

Earlier this month, we were thrilled to complete the acquisition of Activision Blizzard, and we look forward to sharing more information in the coming months about how we will jointly bring the joy of gaming to more people around the world.Devices and Creativity

Finally, we have turned Windows into a powerful new AI canvas. Copilot, which was launched last month as part of the Windows 11 update, uniquely combines context and network intelligence, your work data, and what you are currently doing on your PC to provide better assistance, while always prioritizing privacy and security. Overall, the number of devices running Windows 11 has more than doubled in the past year. We are also transforming the Windows user experience and management through Azure Virtual Desktop and Windows 365, which together have generated over $1 billion in annual revenue for the first time.

Microsoft's Responsibility

While we pursue opportunities, we are also committed to ensuring that technology helps us solve problems rather than create new ones. To achieve this goal, we focus on four enduring commitments that are closely related to our mission and have greater significance in this new era. For us, these commitments are not just empty words. They are important guidelines that guide us in designing and developing products, shaping business processes and policies, helping customers grow, and building partnerships. We always ask ourselves key questions to ensure that our actions align with these commitments.

How do we expand opportunities?

First, we believe that economic growth and opportunity should benefit everyone, every organization, every community, and every country. While artificial intelligence can be a catalyst for opportunity and growth, we must first ensure that everyone has access to the technology, data, and skills they need to benefit from it.

To achieve this goal, we focus on empowering non-profit organizations, social entrepreneurs, and other civil society organizations with technology to help them undergo digital transformation so that they can address some of the biggest challenges in society. This year, we provided over $3.8 billion in discounts and donated technology to non-profit organizations. Nearly 325,000 non-profit organizations are using our cloud services.

Artificial intelligence will replace some jobs, but it will also create new ones. That's why our goal is to train and certify 10 million people by 2025 with the skills needed for digital economic development.

Since July 2020, we have already helped 8.5 million people, including 2.7 million this year. We are also committed to training women and underrepresented communities in the field of cybersecurity, partnering with nearly 400 community colleges in the United States to expand our efforts.

Finally, to help people better understand artificial intelligence, we have partnered with LinkedIn Learning to launch the first online generative AI professional certificate, developed AI tools for educators, and hosted the first AI community learning event in the United States.These activities will be replicated globally in the next year and localized into 10 languages. We have also collaborated to launch a generative AI skills grant challenge to explore how non-profit organizations, social enterprises, and research or academic institutions can empower their employees to use next-generation AI.

How do we win trust?

To make technology have a positive impact, people need to be able to trust the technology they use and the companies behind it. For us, winning trust requires responsible use of AI, protecting privacy, advancing digital security, and cybersecurity.

Our commitment to responsible AI is not something new. Since 2017, we have been working to develop responsible AI practices because we recognize that trust is not given, but earned through actions.

We have translated our AI principles into a set of core implementation processes, as well as tools, training, and practices to support compliance. But internal plans alone are not enough. We also enable our customers and partners to develop and deploy AI securely, including through our AI Customer Commitment and services like Azure AI Studio, as well as access to our Content Safety tools for our responsible AI dashboard.

Building AI responsibly requires collaboration with other industry leaders, civil society, and governments to advocate for AI regulation and governance globally. This year, we released our AI Governance Bluebook, which outlines legal and policy recommendations for AI guardrails. We are signatories to the eight voluntary commitments developed with the U.S. White House and are proud to make an additional six commitments to further strengthen and implement security, safety, and trust principles.

The AI era has heightened the importance of cybersecurity, and we have deepened our work in both the private and public sectors to enhance cyber resilience. We continue to support Ukraine in defending critical infrastructure, detecting and blocking network attacks and influence operations, and providing intelligence related to these attacks. Our Microsoft Threat Intelligence Center team has produced over 500 intelligence reports to help customers and the public understand the landscape. We have also released our third annual Microsoft Digital Defense Report, sharing our lessons learned and security recommendations.

We are also committed to creating a safe online experience while protecting customers from illegal and harmful content and behavior, while respecting human rights. We support the Christchurch Call to Action on addressing terrorist, violent, and extremist content online. And through the World Economic Forum's Global Cybersecurity Alliance, we have jointly developed new global cybersecurity principles.

Protecting customer privacy and giving them control over their own data is more important than ever. We have begun the phased rollout of the EU Data Boundary to support the data sovereignty needs of our business and public sector customers. Each month, over 3 million people exercise their data protection rights through our Privacy Dashboard, making meaningful decisions about how their data is used.How do we protect fundamental rights?

In an increasingly digital world, we have a responsibility to promote and protect people's fundamental rights and address the challenges brought by technology. For us, this means adopting responsible business practices, expanding connectivity and accessibility, promoting the development of a fair and inclusive society, and empowering communities.

By 2023, we strive to anticipate the harmful uses of our technology and set limitations on the use of technologies that have significant impacts on our lives or legal status, in order to avoid risks of harm or human rights violations. We will continue to assess the impact of our technology, engage with stakeholders, develop and adopt responsible practices, and respect human rights - including in our global supply chain.

Today, our lives are more interconnected than ever before. Access to education, employment, healthcare, and other essential services increasingly relies on technology. That's why we have expanded our commitment to provide affordable high-speed internet to 250 million people worldwide by the end of 2025, including 100 million people in Africa. Since 2017, we have helped 63 million people gain internet access, which is a crucial first step in ensuring communities can benefit from artificial intelligence and other digital technologies.

This year, we also continue our efforts to fulfill our five-year commitment to bridge the disability divide, with a focus on helping narrow the accessibility knowledge gap. Through partnerships with LinkedIn Learning, Teach Access, and the Microsoft Disability Community, 750,000 learners have enriched their understanding of disabilities and accessibility.

Furthermore, we are intensifying our efforts to combat online misinformation through new media content origin technology, which enables users to verify whether images or videos are generated by artificial intelligence. We continue to work towards racial equity in Microsoft, our ecosystem, and our communities, including through data-driven insights to drive justice reform. We have also provided support for eight humanitarian crises, including a commitment of $540 million to those affected by the Ukraine conflict.

Finally, recognizing the potential of artificial intelligence in promoting human rights and humanitarian action, we are committed to several AI humanitarian action projects. Together with our partners, we are building capabilities to identify communities at risk, estimate seasonal hunger, predict malnutrition, and assist in disease identification.

How do we advance sustainability?

Climate change is the defining issue of our generation, and addressing it requires swift collective action and technological innovation. We are committed to achieving our own goals while enabling other countries to achieve the same. This means taking responsibility for our operational footprint and accelerating progress through technology.

We continue to witness the impact of extreme weather on communities around the world. Meeting the urgent need for action requires a decade of innovation and decisive action - for Microsoft, our customers, and the world.In our latest Sustainability Report, we shared the progress we have made in our 2030 goals for carbon, water, waste, and ecosystem sustainability. In 2022, our overall carbon emissions decreased by 0.5% while our business continued to grow. Addressing Scope 3 emissions remains our ultimate challenge, and we will continue to tackle this issue through supply chain improvements, policy advancements, and industry-wide knowledge sharing.

We have provided clean water and sanitation facilities to nearly 1 million people, which is one of the five pillars of our commitment to responsible water use. In our pursuit of zero waste, we achieved a reuse and recycling rate of 82% for all cloud hardware and diverted over 12,000 tons of solid operational waste from landfills and incinerators.

We also continue to take responsibility for the impact our direct operations have on the Earth's ecosystems. We have signed agreements to protect 17,268 acres of land, which is more than 50% larger than the land we use for operations. Of this, 12,270 acres have been designated as permanently protected land, equivalent to approximately 7,000 football fields.

Technology is a powerful lever to help us avoid the most severe impacts of climate change. That is why we are accelerating investments in more efficient data centers, clean energy, enhancing the sustainability of Microsoft Cloud, and practicing planetary computing and green software. To date, through our Climate Innovation Fund, we have allocated over $700 million to more than 50 investments covering sustainable solutions in energy, industry, and natural systems.

Finally, we believe that artificial intelligence can be a powerful accelerator in addressing the climate crisis. We have expanded our AI for Good Labs in Egypt and Kenya to improve climate adaptation in Africa. Additionally, we have launched the Global Renewable Energy Observatory with partners, an unprecedented atlas of solar and wind power facilities at utility scale, enabling users to assess progress in the transition to clean energy.

While this new era brings tremendous opportunities, it also brings greater responsibility for companies like ours. As we pursue these four commitments, we also prioritize transparency - providing clear reports on how we operate our business and collaborate with customers and partners. Our Annual Impact Summary shares more of our progress and learnings from this year, while our Reporting Center provides detailed reports on our environmental data, political activities, employee demographics, human rights work, and more.

Our Culture

Preserving our culture is more important than ever before. The way we work and the pace at which we work are changing.

In today's economic environment, past excellence has become the expectation of today. Every Microsoft employee needs to embrace a growth mindset, and more importantly, confront our fixed thinking as our company culture continues to evolve. In this new era, we need the everyday courage to redefine innovation, business models, and sales trends.As an efficient organization, our goal is not only to help employees seize economic opportunities to the fullest, but also to assist them in continuous learning and growth, aligning personal passion and goals with daily work and the company's mission.

To succeed, we must have a thorough understanding of the needs of customers and the world as a whole. As a whole, Microsoft needs to constantly innovate and collaborate. In addition, we actively pursue diversity and strive to create an inclusive cultural atmosphere so that all employees can unleash their best abilities. To empower the world, we need to fully demonstrate the diversity of the world. To this end, we will continue to focus on increasing employee representation and making our culture more inclusive. Despite the challenges we face this year, our company still maintains the highest level of global diversity in history.

Giving back to society is also an important part of our culture. This year, over 105,000 employees donated a total of $242 million (including company matching) to support over 35,000 non-profit organizations in 116 countries worldwide. In addition, our employees contributed over 930,000 hours of volunteer service to causes they care about.

I am deeply grateful for our employees' commitment to the company and their dedication to the community. I appreciate their daily practice of our mission and culture in this ever-changing company and world.

In summary, this is Microsoft's moment. We have an incredible opportunity to harness the benefits of this new era of artificial intelligence for every individual and organization on Earth.

At the beginning of the new year, I came across a tweet from Andrej Karpathy, former head of artificial intelligence at Tesla and now working at OpenAI, stating that GitHub Copilot is now writing 80% of his code with 80% accuracy.

Two days later, I saw an amazing example of our collaboration with the Ministry of Electronics and Information Technology of the Government of India, where they are applying an artificial intelligence model to enable farmers in rural areas to interact with government resources in their native language.

Just think about it: a foundational model developed on the US West Coast is already changing the lives of elite developers and rural farmers on the other side of the globe. We have never seen such rapid dissemination and wide-ranging impact in the tech industry before.

As a company, this is our moment to responsibly build solutions, drive economic growth, and benefit every community, country, industry, and individual. If we do well, the world will do well, and Microsoft will do well. I have never been more confident that we will fulfill this commitment together in the days, months, and years to come.

Satya Nadella

Chairman and CEO

October 16, 2023