Rose through the ranks over the next three decades. In his first book hit refresh, he sheds light on his career in microsoft and how Artificial Intelligence will shape the future. Joining me on bloomberg 1. 0, microsoft ceo satya nadella. The story of how you got from india to microsoft is not your typical immigrant story. You describe yourself as a not so ambitious student. You failed an entrance exam. You said you wanted to play cricket and work at a bank. Yet here you are, the ceo of one of the Biggest Technology companies in the world. Satya i was not planning on looking back at my life. I was thinking of what is the transformation i am going yet here you are, the ceo of one through while going through it. With some encouragement, i went back and tried to trace one of these hit refresh moments from my past. I think the thing i now recognize more so than when i was growing up is the space i got. I think the ability to think for yourself, the ability to follow your own passion was just trying to fit a particular mold. In the long run, has been more beneficial than any Academic Excellence in the short run could have. That, i think, is something i now think is perhaps as important as we think about all of what we say is needed in education. Emily the most powerful moment for me in the book are the family moments. It is a love story for your wife, your sons, he was born with severe cerebral palsy. How has this changed you as a person, and a leader . Satya he was born when i was 29, and if you had asked me just the night he was born, a few hours before, what was going through my head, i would have been more when is my wife going to get back to work as an architect, or will the nurse be ready nursery be ready . And that night, everything changed. When he was born, because of his brain damage, which led to cerebral palsy, but for the first couple of years, i struggled with it. Everything i thought was my plan, in some sense, fell apart. It was all about me and why did this happen to me, why did this happen to us . It was only watching my wife and what she did. The very next day, after a csection, she stepped up and started caring for zane. All those years without actually schooling me, she schooled me. Nothing happened to me, something happened to saying. O zane. To zane. I needed to step up as father. That, to me, is perhaps the most tough lesson the life teaches you. To be able to see life through otherseyes. That, to me, is perhaps were a where a bit more of this need for empathy comes from. It definitely changed who i was as a person, whether at home or at work. Emily working with bill gates and Steve Ballmer over two and a half decades, what are the things you want to emulate and what are the things you want to do differently . Satya both bill and steve, one of the things that is pretty stunning to me, is the intellectual honesty. What i mean by that is their ability to see things, good and bad, but most importantly things that need to be improved with such clarity. I have always felt that at microsoft, there would be lots of people who would run around wanting to be like bill and steve, except that we would not have that same level of intellectual honesty. But that is just such a High Standard and more importantly, such an expiring inspiring standard they set for all of us. Emily when you came in, you got the job and said, there is a lot to fix at microsoft company, it is sick. The company has lost its soul. Had you come in and say everything needs to be fixed, without offending them . Satya there is a courage to be able to both look at what needs to be fixed, and also recognize what is good. It is something i quite frankly learned from bill. Bill in his forward probably captures the logic of hit refresh the best. It is about changing what needs to be changed, that is the trick. They were clear, in fact steves last piece of advice to me was bureau in person. I am a consummate insider. I grew up in the company that paul and bill founded and steve and bill created. To me, i was part of the same journey, i am proud of that journey, yet i have an outsiders perspective as best as one can have growing up there. To be able to say these are things we need to change. Emily when you and bill gates disagree, what happens . Satya bill is clear, i am the ceo, he can give me the most critical feedback, but it is up to me to make sure i am leading the company. So there is no confusion on that, but i value if bill this agrees, it is probably something i should look at again. Emily we are watching you take on this huge cultural shift, and we are seeing other companies, like uber for example, struggle with making a huge cultural shift. What is your advice to someone at uber . Satya it is always hard to give general advice, the context of everyone is so different. It is for companies who have been around for a while, that have had tremendous success, that is when culture becomes most important. The culture that got you the first success, may not get you to the next. Being mindful of that systems problem is the job of the ceo. I think about how can the ceo be the first one to admit what needs to be refreshed. It is super important, and that is what i am recognizing. That is how microsoft has been able to catch a lot of big waves. They wouldnt be competing with a whole set of new people if you havent changed a lot. But we missed a few. How do we recognize these moments and capitalize on them . Emily you met President Trump twice now. What is your impression . Emily you talk about in the book microsoft trying to relearn and be a good partner. One of your partnerships with salesforce has since soured, what is the danger of partnering with competitors . Satya i take anything we do, whether with salesforce or oracle, google or apple, or anyone of them, and say first, lets not think of everything as zerosum. Think of the places where we can actually Work Together to help customers and compete where we have overlaps. It is never this binary we are all the time competing or all the time cooperating for anyone of the competitors we work with, we look to try and find how we can create these nonzerosum cooperations. Emily buying link in is one of your biggest bets yet, which you bought for 26 billion dollars. What have been the early successes and challenges . Satya the thing that was important to us and jeff was to make sure. M a starts with whether the core asset is it thriving . Linkedin is growing, growing old in its usage, in its stop line, in terms in terms of its bottom line. We are close to now six or seven months after close, we are at selector it accelerating growth is the thing i look at to as the marker of success. Emily what are the early challenges of integrating a Large Company into a Larger Company . Satya we took a very different approach to integration this time around because the goal was to have very tight alignment around mission and strategy and vision for what we want to do, but to have a very loosely coupled integration. I think that is one of the key patterns we want to follow. Jeff leads linkedin, he leads the integration with microsoft, which is something we decided day one and i decided we were going to do differently, and it has worked out very well. Emily the microsoft cloud is your other baby and has been for many years. You are behind amazon aws in terms of revenue, where you see it stacking up and not . Satya microsofts play is not just about trying to mimic anyone competitor on one part of the stack. What has really taken off lately, even in the cloud infrastructure, is hybrid. I have always claimed multiple years at the edge of the cloud is probably as exciting as the cloud is. And whether it is amazon or google who are strong in some layers, i would claim we are probably the only enterprise satya microsofts play is not company that has strength across all the later layers that are key to customers. Emily microsoft has buried been very out front in opposing President Trumps policies, daca. How do you decide when to push back . Satya to us, what are the timeless values that have to translate into these principle stands that we take . When it comes to immigration, making sure we do everything it 3takes to protect our employees whole are contributing to microsoft and american society, in the case of dreamers, take a principled stand. That is how we pick these issues, but i am not an elected official, i dont have a mandate. We are subject to laws, but we will fight for what we believe is the right of our people. Emily we have seen the nfl getting pushback from fighting against President Trump, star back has gotten pushback from shareholders. Have you gotten pushback . Satya whether it is at the Border Management level, perhaps the biggest recognition if i have learned one thing in my three and a half years as a ceo, is that true multiconstituent nature of the job. It is not as simple as thinking of just the shareholders, just the customers, just the employees, just the government, it is all of these forces simultaneously all the time. For a large, Multinational Company like ours, really balancing all of this is what is required. Emily you met President Trump twice now, what is your impression . Satya both times, the conversations were all centered around my conversations were around immigration and why i think immigration and Immigration Reform can drive american competitiveness, making a case for it as well as the need for american infrastructure. Particularly, Digital Infrastructure and of those conversations were good and he was receptive to those ideas and now we need to keep working and make sure there is axing on it. Emily we are seeing drive to integrate the Tech Industry from google, to the u. S. , to europe, are you worried about the threat of increased regulation . Satya the most important thing for Tech Companies is not to worry about any impending regulation. We are a multinational, all it does is it is not learned longterm stable. Not longterm stable for capitalism. You have to be able to say, in any country, whether the u. K. , germany, china or the united states, how do Small Businesses become more productive . How do Large Companies in those countries become more competitive . That, to me, is ultimately how we have to measure our success and that is what is going to cause governments to say are these contributing or not . Emily should the Tech Industry being doing more self policing . Satya the pace of change is such and more rapid that we are absolutely going to look at the unintended consequences of Tech Knowledge he and make sure that we do not trade away some of these timeless values, as there are advances in technology. Long before even regulation, it is important for Tech Companies to self police or create the tools that create transparency. Make sure peoples privacy is protected. Emily would you ever make a phone again . Emily there has been a spate of Sexual Harassment allegations in tex. Many revealed publicly, many more happening im sure than we know about. What is the responsibility of text here . Satya lets start with recognizing how important it is for our business to have the Diverse Workforce that is then able to do their best work, but it means you have an Inclusive Culture so you can create the products and services that can creep serve the world. I talk about our mission is empowering every person and organization, and it starts with representing every person and organization inside. If you recognize that importance, you will go to work like we are in saying, what is the representation . In our case, womens representation, which is low, we have been pushing hard and in the last couple of years, we have improved a couple points to 27. 4 percent. Nothing to write home about, we have a long way to go. We improved by 4 from a much lower base. But all of this conversation in the Tech Industry is, i believe, the best thing that can happen for this industry is we are now going to tackle from tom, instead of having this be something that is not talked about, what about inclusion . It is not just the numbers. The numbers dont just happen on their own. It is only when people feel they can bring their a game. We have changed even the compensation for me and my Senior Leadership team around diversity and inclusion emily how so . Satya making sure our bonuses are tied to actual improvements. So its not just the rhetoric, but the numerical progress, even. To be able to put more weight behind this in all dimension. To be serious about it on all dimensions. Emily you made a much criticized remark in 2014 about women seeking pay raises. He said it is not really about asking for a raise, but having faith the system will give you the right raise. You apologized, spend four pages in your book talking about why that is wrong. How has that informed your views about your own implicit biases and others having the same awakening . Satya to take a question at a womans conference and answer it on ones own experiences, especially in the seat i sit in, is nonsense. What was behind the question is, what are you as the ceo of microsoft going to do to make the system be more fair . So that i get the opportunity to do my best work, and that to me is the real awakening, and that is when i went back and said, how could i not get that . The deeper sense behind the question . For me, i have used it as a learning opportunity and for our company, i think we are better off because of my public messing up of that, because we take it seriously. I have had a chance to learn a lot from it. Satya how far from it is microsoft being able to make its own hardware . Emily it satya satya it was alan kay who said if you care about your software, you will make your own hardware. Emily would you ever make a phone again . Satya one thing we have said multiple times is that at this point, what is needed is for us not to be obsessed about categories that are well served, not on current rules. What is considered a phone today will be a very different in the future. If you take hollow lens, is it a mobile device . Yes, it is untethered, battery powered, you wear it on your eyes. What is the future of those kinds of devices . To me, microsoft will always be in this end to end computing experience, but our goal is to create invent categories and reinvent categories. Emily you talk about three strategic bets for the future in your book. Mixed reality, ai, quantum computing. On ai, are you at all concerned that google or facebook or amazon or apple could outpace microsoft on ai and become dominant in ai this ai future we keep hearing about . Satya to me, microsofts approach will be all around, how do we take ai . Today is a little perverse in how everyone says look how cool i am because of the ai capability. That is not how microsoft approaches any problem. It is not about any parlor trick of hours or a promise we celebrate. The most important thing to us is, are we market sizing so every customer of ours can build their own ai. If you want this industrial revolution, we now need to find a way to demarketise it so that anyone can use ai to their endeavor. Emily is elon musk right to be warning about the dangers of ai, the military applications or otherwise . Satya with any new technology, there is a lot of good that comes with it and we should grab hold of it and be clear eyed about any unintended competition answer quenches. Unintended consequences. Weve got to be able to use ai to empower humans. But that said, wherever ai runs amok or we lose control, that could be dangerous. So, i think the first responsibility we have in thinking that is going to happen, let us encode or enshrine a set of design principles, so i think we shouldnt abdicate our responsibility, like good user experience. Happen, let us encode or there is such a thing as good ai, i believe what is the need of the hour is for us the creators to enshrine those principles. Emily so robots could take over the world, but hopefully not. What is the one product the competition got to first that you wish microsoft could have gotten to first . Satya if i look back at history, there are many products. I wish we had even gotten to the relational database before oracle. If you think about one of the most amazing pieces of technology, before ibm. I dont worry above as much about the Technology Someone else got two. Got to it. The question is, are we able to go back to that sense of purpose that we have of what we can do with the technology, however novel and knew it is, it has to fit with our identity. Even if someone else gets to a quantum computer first, what are they going to do with it versus what we will do with it is probably very different. Emily you now build many of your projects for many different operating systems. What is the future importance of windows to the microsoft future in general. Satya there are billions of users of windows, 3 million pcs got sold last year and it continues to be a significant part of what we do. But it is not the only part. That is the change for us, which is, we now have a much more diverse, robust business. We have xbox in gaming which spans pc gaming and the console gaming, more than 55 million xbox live subscribers. We have windows system, the fastestgrowing pieces of windows are all about microsoft 365. We obviously have our office services, dynamics 365, hybrid infrastructure. Microsoft in that sense is a much more diversified portfolio, with linkages between them. That is how we are going to keep going forward. Emily satya nadella, thank you so much for joining us today on bloomberg 1. 0. So great to have you. Satya thank you. So we need tablets installed. With the menu app ready to roll. In 12 weeks. Yeah. The world of fast food is being changed by faster networks. Data, applications, customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Fast connections everywhere. Thats how you outmaneuver. 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