TLDR: Microsoft CEO Satya Nadella recently revealed that co-founder Bill Gates expressed skepticism about the company’s initial $1 billion investment in OpenAI in 2019, reportedly warning it would be like ‘burning money.’ Despite the caution, Nadella proceeded, a decision that has since led to over $13 billion in total investment and positioned Microsoft as a leader in the AI revolution, particularly with the success of ChatGPT and OpenAI’s recent restructuring into a Public Benefit Corporation.
Microsoft CEO Satya Nadella has publicly shared that company co-founder Bill Gates initially harbored significant doubts about Microsoft’s decision to invest $1 billion in the then-nascent artificial intelligence research company, OpenAI, back in 2019. Nadella recounted Gates’ warning, stating, ‘I think Bill even said, ‘Yeah, you’re going to burn this billion dollars’.’ This revelation came during an interview on ‘TPBN,’ a tech-focused YouTube show, where Nadella discussed the challenges and risks associated with securing such a substantial investment.
Nadella emphasized that obtaining board approval for a billion-dollar outlay, especially for a non-profit entity like OpenAI was at the time, was not a straightforward process within Microsoft. However, he maintained a strong conviction in the potential of AI, stating, ‘But I must say it was not that hard to convince anyone that this is an important area and it’s going to be risky.’ He acknowledged the high-risk tolerance involved, adding, ‘We kind of had a little bit of high risk tolerance, and we said we want to go and give this a shot.’
In retrospect, Nadella admitted he didn’t foresee the monumental success that would follow. ‘I didn’t put in a billion dollars saying, ‘Oh yeah, this is going to be a hundred bagger’,’ he remarked. The initial $1 billion investment in 2019 has since grown significantly, with Microsoft pouring over $13 billion into OpenAI. This strategic partnership proved pivotal, especially with the explosive growth of ChatGPT, which became a household name after its release in November 2022, attracting a million users within five days and now boasting over 800 million weekly users.
The collaboration has transformed Microsoft into a global AI leader, with the partnership now valued at an estimated $135 billion. Microsoft currently holds a 27% stake in OpenAI’s for-profit business.
In a related development, OpenAI recently underwent a major corporate restructuring, transforming its for-profit arm into a Public Benefit Corporation (PBC) called OpenAI Group PBC. This move, announced around October 28-29, 2025, aims to solidify CEO Sam Altman’s authority and grant the company greater flexibility in capital-raising, untangling limitations from the original 2019 agreement with Microsoft. The restructuring is seen as a step towards a potential public listing, with some analysts speculating OpenAI’s valuation could reach $1 trillion.
Furthermore, on November 2, 2025, OpenAI and Oracle announced plans to build a 1GW data center campus in Saline Township, Michigan, known as the ‘Stargate Project,’ set to break ground in early 2026. This initiative underscores the massive infrastructure demands of advanced AI research and development.
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Gates’ initial skepticism, rooted in OpenAI’s non-profit status and the uncertainty of financial returns, stands in stark contrast to the current reality, where Nadella’s bold bet has undeniably paid off, reshaping the technological landscape.
