Satya Nadella: 'All Software Is Being Rewritten' — Microsoft All-In on Agentic AI with $150B

The Entire Software Industry Is Changing

Microsoft CEO Satya Nadella is clear: "All software is being rewritten" as a result of AI. Microsoft is investing $150 billion in AI infrastructure and now has 15 million paying Copilot users (3% of the M365 base). Nadella is restructuring top management with four new EVPs to drive the AI transformation, while the company bets on three layers: infrastructure, agent platform, and enterprise applications.

Relevance

Nadella is setting the pace for the entire enterprise software industry — and your vendors are adapting to his vision right now.

My assessment

3% paying Copilot users out of a massive M365 base tells me that most companies haven't seriously gotten started yet. Nadella knows this and is pushing Wave 3 to change that. For a CIO, the message is: it's not too late to get in early — most of enterprise adoption is still ahead of us. But the strategic advantage goes to those who move in 2026.