Microsoft Has Lost Its AI Sparkle

Who could forget those heady days when Microsoft Corp. Chief Executive Officer Satya Nadella looked like the smartest man in tech? When ChatGPT emerged in late 2022, his decision to back OpenAI put Nadella’s company at the forefront of the AI boom. The top AI models would be embedded in its software and available on its cloud platform exclusively.

But more recently, the relationship has cooled and with it the perceived value of Nadella’s foresight. Microsoft has now invested in Anthropic and looked to incorporate its capabilities into its products. And OpenAI, hungry for computing power, has turned to Oracle Corp., Alphabet Inc.’s Google and Amazon.com Inc.