Microsoft bet everything on AI. Is its North Star now a noose?

ASSOCIATED PRESS; Tyler Le/BI Three years ago, Satya Nadella catapulted Microsoft to the front of the AI race and became "like a superhero," one recent former Microsoft executive said. In February 2023, after betting early on OpenAI, the CEO unveiled Microsoft's AI-powered Bing search engine before a packed audience outside Seattle, and declared a war on Google's search dominance. "A race starts today," he said. Waves of adulation followed. When Nadella helped navigate OpenAI's board crisis later that year, Bill Gurley called it an "amazing shift in corporate reputation." CNN Business chose Nadella as the CEO of the Year. Inside Microsoft and across the tech industry, Nadella was hailed for seizing the future. Now, his legacy is at stake. Microsoft's stock is down more than 24% from 12 months ago, significantly worse than the rest of the Magnificent 7.