All things AI w @altcap @sama & @satyanadella. A Halloween Special. 🎃🔥BG2 w/ Brad Gerstner

**Sam Altman** (0:00)
I think this is really an amazing partnership through every phase. We had kind of no idea where it was all going to go when we started, as Satya said, but I don't think, I think this is one of the great tech partnerships ever. And without, certainly without Microsoft, and particularly Satya's early conviction, we would not have been able to do it.

**Brad Gerstner** (0:32)
What a week, what a week. Great to see you both. Sam, how's the baby?

**Sam Altman** (0:37)
Baby is great. That's the best thing I've had. Every cliche is true, and it is the best thing ever.

**Brad Gerstner** (0:44)
Hey, Satya, with all your time.

**Satya Nadella** (0:45)
And the smile on Sam's face whenever he talks about his baby is just so different. It's that and compute, I guess, when he talks about compute and his baby.

**Brad Gerstner** (0:58)
Well, Satya, have you given any dad tips with all this time you guys have spent together?

**Satya Nadella** (1:01)
I said, just enjoy it. I mean, it's so awesome that we had our babies or our children so young and I wish I could redo it. So in some sense, it's just the most precious time and as they grow, it's just so wonderful. I'm so glad Sam is-

**Sam Altman** (1:18)
I'm happy to be doing it older, but I do think sometimes, man, I wish I had the energy of when I was like 25 That part's harder.

**Brad Gerstner** (1:25)
No doubt about it. What's the average age at OpenAI, Sam? Any idea? It's young.

**Sam Altman** (1:30)
It's not crazy young, not like most Silicon Valley startups. I don't know, maybe low 30s average.

**Brad Gerstner** (1:36)
Are babies trending positively or negatively?

**Sam Altman** (1:39)
Babies trending positively.

**Brad Gerstner** (1:40)
Oh, that's good. That's good.

**Sam Altman** (1:41)
Yeah.

**Brad Gerstner** (1:42)
Well, you guys, such a big week. I was thinking about, I started at NVIDIA's GTC, just hit $5 trillion, Google Meta, Microsoft, Satya, you had your earnings yesterday, and we heard consistently not enough compute, not enough compute, not enough compute.
We got rate cuts on Wednesday, the GDP is tracking near 4%, and then I was just saying to Sam, the president's cut these massive deals in Malaysia, South Korea, Japan, sounds like with China, deals that really incredibly provide the financial firepower to re-industrialize America. $80 billion for new nuclear fission, all the things that you guys need to build more compute, but certainly what wasn't lost in all of this was you guys had a big announcement on Tuesday that clarified your partnership, congrats on that. I thought we'd just start there. I really want to just break down the deal in really simple, plain language to make sure I understand it and others. But we'll just start with your investment, Satya. Microsoft started investing in 2019, has invested in the ballpark at $13, $14 billion into OpenAI. For that, you get 27 percent of the business, ownership in the business on a fully diluted basis. I think it was about a third and you took some dilution over the course of last year with all the investment. So does that sound about right in terms of ownership?

**Satya Nadella** (3:04)
Yeah, it does. But I would say before even our stake in it, Brad, I think what's pretty unique about OpenAI is the fact that as part of OpenAI's process of restructuring, one of the largest non-profit gets created. I mean, let's not forget that in some sense, I say at Microsoft, we are very proud of the fact that we were associated with the two of the largest non-profits, the Gates Foundation and now the OpenAI Foundation. So that's, I think, the big news. We obviously are thrilled. It's not what we thought. And as I said to somebody, it's not like when we first invested our billion dollars, that, oh, this is going to be the 100-bagger that I'm going to be talking about to VCs about. But here we are. But we are very thrilled to be an investor and an early backer, and it's a great and it's really a testament to what Sam and team have done, quite frankly. I mean, they obviously had the vision early about what this technology could do, and they ran with it and just executed, you know, in a masterful way.

**Sam Altman** (4:05)
I think this is really an amazing partnership through every phase. We had kind of no idea where it was all going to go when we started, as Satya said. But I don't think I think this is one of the great tech partnerships ever. And without, certainly without Microsoft and particularly Satya's early conviction, we would not have been able to do this. I don't think there were a lot of other people that would have been willing to take that kind of a bet, given what the world looked like at the time. We didn't know exactly how the tech was going to go. Well, not exactly. We didn't know at all how the tech was going to go. We just had a lot of conviction in this one idea of pushing on deep learning and trusting that if we could do that, we'd figure out ways to make wonderful products and create a lot of value. Also, as Satya said, create what we believe will be the largest nonprofit ever. I think it's going to do amazingly great things.