The sustainable competitive advantage for enterprises using AI is not static proprietary data, but rather the ability to create a virtuous feedback loop: take commoditized foundation models, fine-tune them with internal knowledge and data, deploy outputs, capture market signals (customer feedback, marketplace validation), and reinforce the model through reinforcement learning in the real world.

causalpending

Speaker

Satya Nadella

Evidence Quote

The sustainable advantage is to get a new sample to then use these reasoning models with your data to then be able to do RL in the real world... That's the virtuous cycle.

Source

Satya Nadella on AI Agents, Rebuilding the Web, the Future of Work, and moreRowan Cheung
Created: 8/11/2026, 6:44:12 AM

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