Microsoft CEO Satya Nadella has unveiled a sweeping transformation plan for the tech giant, declaring that the company’s long-standing identity as a software manufacturer is no longer enough in the era of artificial intelligence.
In an internal memo to employees, Nadella said Microsoft will evolve into an “intelligence engine” aimed at democratising AI for global users. “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,” he wrote.
The shift, Nadella explained, moves Microsoft’s focus from creating ready-made software to enabling anyone, individuals, businesses, and communities, to build their own AI-powered tools and solutions.
“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 said.
This strategic overhaul will require reimagining every layer of Microsoft’s technology stack, from infrastructure to applications and AI agents.
Nadella emphasised that the company’s competitive edge will come from integrating these layers into seamless, end-to-end experiences rather than focusing on standalone products.
The goal, he said, is to generate “local surplus in every company, community, and country,” making advanced AI capabilities accessible beyond large corporations and tech experts.
The move positions Microsoft to compete aggressively in a market increasingly defined by AI innovation and adaptability.
Written By Rodney Mbua
