In a recent interview with ET, Aravind Srinivas, the founder of Perplexity, highlighted the mentorship role played by Microsoft CEO Satya Nadella. Despite Perplexity’s competition with Microsoft’s Copilot, Srinivas emphasized Nadella’s commitment to the broader vision of artificial intelligence (AI).

Srinivas noted that while Perplexity may find itself competing against Microsoft in the AI landscape, Nadella maintains an eye on potential collaboration. “If Perplexity succeeds and we can do business together, that is fine,” he stated, reflecting a mature perspective on competition.

“Yes, Microsoft has Copilot and we may compete, but he (Nadella) looks at the big picture,” Srinivas remarked, illustrating the strategic mindset evident in Nadella’s leadership.

Srinivas further praised Nadella, calling him a “phenomenal CEO and coach.” He remarked, “I think he could have been a great founder too. He is more of a refounder at Microsoft, which is incredibly hard.”

Microsoft’s Shift in Focus

To streamline operations, Microsoft recently appointed Judson Althoff as CEO of the commercial business. This move allows Nadella to sharpen his focus on the technological side of the enterprise.

Nadella has openly recognized that Microsoft’s legacy as a software maker is evolving. In a memo to employees on July 24, he outlined a pivotal shift: the company aims to become an “intelligence engine” that integrates AI into everyday solutions.

“When Bill founded Microsoft, he envisioned not just a software company, but a software factory, unconstrained by any single product or category,” Nadella expressed. “Today, it’s no longer enough,” he added, underlining the necessity of adaptation.

Reimagining Purpose in the AI Era

Nadella stressed the importance of redefining Microsoft’s purpose to align with the demands of today’s technological landscape. The focus is shifting away from developing tools for specific tasks to creating AI systems that empower users to develop their own intelligent solutions.

Earlier, Nadella informed Meta CEO Mark Zuckerberg that AI is already responsible for producing 20–30% of Microsoft’s code across various projects. This leadership transition signifies Microsoft’s intensified commitment to the global AI race.

Perplexity’s Rise in Silicon Valley

Aravind Srinivas, an alumnus of IIT Madras with experience at OpenAI and Google DeepMind, now helms one of Silicon Valley’s most promising AI startups, valued at $20 billion. The company has garnered significant backing from prominent figures like Amazon founder Jeff Bezos, the SoftBank Vision Fund, and Nvidia.

Despite challenges posed by immigration policies, Srinivas maintains that Silicon Valley remains a haven for outsiders. “It is one of the few places in the world that is truly meritocratic,” he said, reflecting on its unique culture.

Perplexity AI recently announced its acquisition of Visual Electric, an AI-driven image and video generation platform. This development signals a strategic move to enhance its competitive edge against rivals like Google and OpenAI.

Conclusion

The interplay between Perplexity AI and Microsoft highlights the rapidly evolving landscape of artificial intelligence. With visionary leaders like Srinivas and Nadella at the helm, the future of AI holds promising opportunities for collaboration and innovation.