Microsoft CEO Satya Nadella says that the company’s decades-old identity as a software manufacturer is no longer sufficient, writing to employees he announced a fundamental transformation into an “intelligence engine” designed to democratize artificial intelligence for global users.“We must reimagine our mission for a new era,” Nadella wrote in an internal memo. “When Bill founded Microsoft, he envisioned not just a software company, but a software factory, unconstrained by any single product or category. That idea has guided us for decades. But today, it’s no longer enough.”The CEO declared that Microsoft’s future lies not in building software for specific tasks, but in creating AI systems that let anyone build their own intelligent tools and solutions.

From building apps to teaching everyone to build

Nadella outlined a fundamental change in Microsoft’s approach to technology development. Instead of creating finished software products, the company will focus on empowering users to create their own AI-powered applications.“It’s not just about building tools for specific roles or tasks. It’s about building tools that empower everyone to create their own tools,” he explained. “That’s the shift we are driving–from a software factory to an intelligence engine empowering every person and organisation to build whatever they need to achieve.”The CEO envisions a world where “all 8 billion people could summon a researcher, an analyst, or a coding agent at their fingertips, not just to get information but use their expertise to get things done that benefit them.”

Microsoft Rebuilds Everything Around AI Technology

Nadella emphasised that this transformation requires redesigning Microsoft’s entire technology foundation. “We will reimagine every layer of the tech stack for AI–infrastructure, to the app platform, to apps and agents,” he stated.The company’s competitive edge will come from integration rather than individual products. “Our differentiation will come from how we bring these layers together to deliver end-to-end experiences and products,” Nadella wrote.This intelligence engine approach aims to create “local surplus in every company, community, and country,” democratizing access to powerful AI capabilities previously available only to large corporations and technical experts. –