How Satya Nadella is weathering the storm of Trumps first days
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Its going to be a long four years for Microsoft as the company tries to navigate the stormy chaos and pledges of retribution that follow wherever President Donald J. Trumps mind wanders. Though hes been president for only a little more than a week, Trump has already unleashed a tsunami of actions that could affect the company: declaring war on diversity (DEI) efforts, removing the guardrails former President Biden placed around AI, and demanding undying fealty as far as his eyes can see.CEO Satya Nadella has clearly been planning how the company can make it through the years as unscathed as possible.Lets look at how hes handled Trump so far and what he might do over the next four years.Avoiding AI warsMicrosoft is the worlds largest and most valuable AI company, and one of Trumps primary goals for AI is to unleash its power, for better or worse. So, his actions will have outsized effects on Microsoft.Trump wasted no time getting to the worse part on his first day in office,he rescinded former President Bidens executive order putting guardrails around AI, including safety and security measures, as well as issues related to bias, civil rights, and how generative AI (genAI) is produced.Microsoft and many other AI companies welcomed Bidens order when it was issued in 2023,because it was good for tech companies, not just for people affected by AI. With guardrails in place, Microsoft and other companies believed more people would use AI, which would meanbigger profits for them.After killing Bidens order, Trump signed his own,asking that an AI action plan be developed by the feds in the next 180 days. The order isas much an attack on Biden as it is anything else its first bullet point called Bidens move a Dangerous Executive Order that hinders AI innovation and imposes onerous and unnecessary government control over the development of AI.We dont know what the Trump Administration plan will be. But its clear it wont target the dangers of AI. Microsoft, as well as other AI companies, have remained silent about the action. It was a smart move for Nadella to hold his tongue Microsoft can always impose its own guardrails on AI, despite Trumps order.Nadella has also stayed on the sidelines in the controversy aroundTrumps Stargate project, a joint initiative by OpenAI, Oracle, Softbank, and the US government to raise $100 billion to build AI data centers and power plants, and then up the ante all the way to $500 billion. Top Trump tech advisor Elon Musk claimed OpenAI, Oracle, Softbank dont actually have the money for the project, called OpenAI CEO Sam Altman a swindler, and said the entire initiative was fake.Altman fired back, telling Musk he was wrong, as you surely know and taking another shot at Musk, writing,just one more mean tweet and then maybe youll love yourself.Nadella sidestepped the fight when asked about it in an interview on CNBC, saying that Microsoft was spending $80 billion on Azure so customers can count on Microsoft with OpenAI models being there everywhere in the world, serving OpenAI models and other models. I am good for my $80 billion, he added.Again, this is a smart move. No matter what happens with Stargate, Microsoft wins. Its a big OpenAI investor, so if Stargate succeeds, it pays off for Microsoft. And if it doesnt, Microsoft can sell more AI-related infrastructure. Joining the tit-for-tat wouldnt have helped Microsoft.Staying the course on DEITrump was elected in part because of his attacks on DEI efforts and since hes become president, hes gone on an anti-DEI rampage. Not only has he shut down the federal governments DEI programs,hes also threatened to investigate companies that continue to pursue DEI goals.Many tech titans joined Trumps crusade, notably Metas Mark Zuckerberg, who killed Metas DEI efforts, and Jeff Bezos, who scaled back Amazons. Google has downsized its DEI program as well.Microsoft hasnt followed suit. Nadella in October said in Microsofts annual report on DEI that the efforts ensure our work force represents the planet we serve, and that the products we build always meet our customers needs.In December, more than a month after Trumps election, Microsoft Chief Diversity Officer Lindsay-Rae McIntyr doubled down on that in a post on LinkedIn, noting that not only are DEI efforts the right thing to do, but theyre essential to Microsofts success.She wrote on LinkedIn, Im thinking about the importance of continuing our diversity and inclusion work, expanding empathy, and anticipating the needs of all our stakeholders, both within Microsoft and beyond.The business case for D&I is not only a constant, but is stronger than ever, reinforcing our belief that a diverse and inclusive workforce is crucial for innovation and success.Once again, Nadella handled this in a low-key way, promising the company will stay true to its values, but not going out of his way to take on a fight with Trump about it.Not singing in Trumps amen chorusBeyond individual issues like AI and DEI is the larger issue of pledging fealty to Trump and all he stands for. Trump has made tech one of the cornerstones of his plans for the future and is using his relationships with tech moguls as a way to provide cover for the ways in which he wants to reshape the country and its politics.Many of the worlds most powerful tech titans are only too happy to sing along in Trumps amen chorus. To show their support, Zuckerberg, Bezos, Google CEO Sundar Pichai, and Musk were all seated in prominent positions at Trumps inauguration. (Note that Apple CEO Tim Cook attended as well, but Apple still fully supports DEI efforts.)Sen. Elizabeth Warren (D-MA) wrote: Big Tech billionaires have a front row seat at Trumps inauguration. They have even better seats than Trumps own cabinet picks. That says it all.Noticeably absent was Nadella. His non-attendance made clear hes not in on Trumps agenda.The upshotWhat weve seen in the earliest days of the Trump administration from Nadella is likely how hell try to safely navigate Microsoft through the coming years. Hell stay out of the public eye as much as possible, wont comment on political and cultural issues, and when it comes to tech wont engage in the kind of chest-banging that Musk, Zuckerberg, Altman, and other tech titans haveengaged in.All that is easy to say and tough to do. But if Nadella can do it, Microsoft will be a stronger company four years from now, with its culture intact.
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