Understanding Performance Breakthroughs: The Impact on Demand

In this sharp and insightful conversation, Satya Nadella breaks down how performance breakthroughs—such as those from DeepSeek—reshape the landscape of AI infrastructure and drive unprecedented demand. He explains how shifting the performance-per-token curve or advancing the efficient frontier doesn’t just improve outcomes—it bends the curve and unlocks entirely new levels of AI adoption, much like the early days of cloud computing. This video explores the correlation between infrastructure performance, efficiency breakthroughs, and market pull, offering a clear view of how next-gen models impact scale and growth in the AI ecosystem.

Transcript: "And any time there's a breakthrough like even what DeepSeek did or what have you with the efficient frontier of let's say performance per token changes and the curve gets bent and the frontier moves that just brings more demand And so that's sort of how I look at it And that's what happened with cloud right by the way Here's an interesting thing"

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