Nadella warns enterprises are paying for AI twice—with money and proprietary data

Microsoft CEO Satya Nadella has warned that companies using proprietary AI models unknowingly surrender valuable business intelligence to model makers.

• Nadella said enterprises "pay for intelligence twice"—once through token fees and again by revealing proprietary knowledge that model makers can use.
• He argued that model makers like OpenAI and Anthropic act hypocritically by training on public data while restricting enterprises' ability to "distill" their models.
• Nadella urged companies to retain ownership of prompts, feedback, and interaction data by building proprietary learning environments on cloud platforms.
• Idit Levine, CEO of Solo.io, said enterprises are increasingly moving to open-source models run on-premises to reduce costs and maintain control.