Microsoft CEO Satya Nadella recently expressed his scepticism regarding the current benchmarks for Artificial General Intelligence (AGI), labelling them as "nonsensical benchmark hacking". In an interview with Dwarkesh Patel, he discussed the implications of AGI, the future of AI in business, and the need for a more grounded approach to measuring AI progress.
Key Takeaways
Nadella criticises self-proclaimed AGI milestones as misleading.
He emphasises the importance of real economic growth over hype.
The Microsoft CEO foresees an oversupply of AI computing power in the coming years.
He believes AI should enhance human productivity rather than replace it.
The AGI Debate
During the interview, Nadella highlighted the loose definitions surrounding AGI, which aims to replicate human cognitive abilities. He pointed out that the current fascination with AGI milestones does not reflect genuine advancements in AI technology. Instead, he argued that these benchmarks often serve as marketing tools rather than indicators of real progress.
Nadella stated, "Us self-claiming some AGI milestone, that’s just nonsensical benchmark hacking to me." He believes that true AI progress should be measured by its impact on economic growth, which currently remains modest in developed countries.
Economic Growth and AI
Nadella stressed that the real measure of AI's success should be its ability to drive significant economic growth. He noted that while developed nations are experiencing around two per cent growth, a true AI transformation would need to achieve growth rates of five to ten per cent, akin to the industrial revolution.
He remarked, "The winners are going to be the broader industry that uses this commodity (AI) that, by the way, is abundant. Suddenly productivity goes up and the economy is growing at a faster rate."

The Future of AI Infrastructure
Looking ahead, Nadella predicted an oversupply of AI computing power as companies and countries invest heavily in infrastructure. He mentioned that Microsoft plans to build more data centres but also intends to lease capacity from competitors, anticipating a drop in prices due to this oversupply.
"I am thrilled that I'm going to be leasing a lot of capacity in '27, '28 because I look at the builds, and I'm saying, 'This is fantastic.' The only thing that's going to happen with all the compute builds is the prices are going to come down," he explained.
AI and Human Collaboration
Nadella also addressed concerns about AI replacing human jobs, asserting that while AI can automate certain tasks, it will also create opportunities for more sophisticated work. He used the example of email management, suggesting that AI could handle routine sorting, allowing humans to focus on more critical analysis.
He concluded by emphasising the need for trust in AI systems, stating, "Before we claim it is something as big as a species, the fundamental thing that we've got to get right is that there is real trust, whether it's personal or societal level trust, that's baked in. That's the hard problem."
In summary, Satya Nadella's insights reflect a cautious yet optimistic view of AI's future, advocating for a focus on genuine progress and economic impact rather than chasing arbitrary milestones.
Sources
Microsoft CEO: AGI milestones are "nonsensical benchmark hacking" | Windows Central, Windows Central.