Microsoft makes less money than Google from Windows, says CEO Satya Nadella

Satya Nadella

Windows remains Microsoft’s bread and butter when it comes of software. Yet, would you believe if someone said that it was Google and not Microsoft that made more money from Windows? Perhaps not. But if that someone is Microsoft CEO Satya Nadella then you better listen.

The rather surprising fact was confirmed by Nadella during a podcast with Bill Gurley and Brad Gerstner.

Nadella highlighted how Google makes more money from one its key products – Windows. He said, “Google makes more money on Windows than all of Microsoft”. Nadella also highlighted the openness of the Windows operating system.

By being "open," Windows allows developers to integrate and run various tools and applications without restrictions favoring one over another. This means that AI tools, such as OpenAI’s ChatGPT or Google Gemini, can operate on Windows equally well, without Microsoft giving preference to its own AI technologies.

The battle of the browsers

Nadella also talked about how Microsoft is trying to make a comeback in the browser market. Microsoft has added AI features to Edge browser, making it smarter and more advanced. However, Google Chrome still dominates as the most popular and trusted browser, used by millions worldwide. Despite Microsoft’s efforts, competing with Chrome remains a tough challenge in today’s tech landscape.

Nadella also suggested what Microsoft is doing to reclaim its lost post. Nadella said, “Chrome became the dominant browser, which is a real travesty because we had won against Netscape only to lose to Google. And we are getting it back now in an interesting way, both with Edge and with Copilot.”

He also addressed the emergence of AI chatbots and how they are competing against the traditional search engines. He highlighted a key difference: traditional search engines, like Google, are "stateless," meaning they don’t retain context or remember past interactions. Each search query is treated independently.

In contrast, AI tools like ChatGPT are becoming "stateful," meaning they can remember previous interactions within a session, which creates a more personalised and dynamic experience. This shift allows AI tools to better understand users' needs and provide more tailored results, making them a compelling alternative to traditional search engines. Nadella’s comments come a day after ChatGPT made its Search feature available for all users.