Core Insights - Microsoft is undergoing significant changes in its leadership and strategy to enhance its artificial intelligence (AI) business, particularly in response to increased competition from Amazon and Google [2][3] Leadership Changes - CEO Satya Nadella is implementing an overhaul of senior leadership to maintain a competitive edge in the AI sector, following a restructuring of the partnership with OpenAI [2] - Nadella's leadership style has shifted to a more hands-on approach, described as being in "founder mode," indicating a proactive stance in driving AI initiatives [3] Competitive Landscape - Microsoft 365's AI assistant, Copilot, has reached 150 million monthly active users, but this figure lags behind competitors like Google (650 million) and OpenAI (800 million) [4] - The company is reacting to the rapid advancements made by competitors in AI infrastructure and model development [3] Strategic Partnerships - Microsoft previously gained an advantage in AI through a multi-billion dollar investment in OpenAI, which provided access to critical technology and data center contracts [4] - However, under a new deal with OpenAI, Microsoft will lose exclusive access to OpenAI's research and data center needs, which may impact its competitive position [4] Internal Sentiment - There is internal dissatisfaction regarding the progress of Copilot, prompting Nadella to take a more direct role in the company's AI strategy [5]