CEO Satya Nadella wants Microsoft to move from its old identity of a ‘software factory’ to AI-driven ….

Satya Nadella

Microsoft CEO Satya Nadella has told employees that the company’s long-standing identity as a software manufacturer is no longer enough. In an internal memo, he outlined a strategic shift to transform Microsoft into what he calls an “intelligence engine,” aimed at making artificial intelligence accessible and useful for everyone worldwide.

Nadella reflected on the vision set by Microsoft’s co-founder Bill Gates, who saw the company as a “software factory” not bound to a single product or category. While that approach shaped Microsoft for decades, Nadella said the current technology landscape demands more. Instead of only creating finished software products, Microsoft will focus on developing AI platforms that enable people to build their own intelligent tools and applications.

“It’s not just about delivering tools for specific roles or tasks. It’s about giving everyone the capability to create their own tools,” Nadella wrote. He described this as a shift from being a software provider to becoming an enabler, where individuals and organisations can design AI-powered solutions tailored to their needs.

The transition to an “intelligence engine” will involve rethinking Microsoft’s entire technology stack—from infrastructure to application platforms to the applications themselves. Nadella said the company’s competitive strength will come from integrating these layers into end-to-end AI experiences, rather than relying on isolated products.

“Our aim is to enable all eight billion people to have access to AI agents—be it a researcher, an analyst, or a coding assistant—capable not only of delivering information but also of applying expertise to achieve results,” Nadella stated.

According to Nadella, this approach is designed to create benefits at every level—from individual users to businesses, communities, and entire nations—by making advanced AI capabilities widely available. The goal is to move AI out of the exclusive domain of large corporations and technical specialists, enabling everyone to innovate and solve problems with powerful, personalised tools.