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No Priors Ep. 18 | With Kevin Scott, CTO of Microsoft

In this episode, Sarah and Elad speak with Microsoft CTO Kevin Scott about his unlikely journey from rural Virginia to becoming the driving force behind Microsoft's AI strategy. Sarah and Elad discuss the partnership that Kevin helped forge between Microsoft and OpenAI and explore the vision both companies have for the future of AI. They also discuss yesterday’s announcement of “copilots” across the Microsoft product suite, Microsoft’s GPU computing budget, the potential impact of open source AI models in the tech industry, the future of AI in relation to jobs, why Kevin is bullish on creative and physical work, and predictions for progress in AI this year. 00:00 - Kevin Scott's Journey to Microsoft CTO 12:44 - Microsoft and Open AI Partnership 21:18 - The Future of Open Source AI 32:12 - AI for Everyone 45:29 - AI and the Future of Jobs 51:44 - The Future of AI and Regulation

Sarah GuohostKevin ScottguestElad Gilhost
May 23, 202354mWatch on YouTube ↗

At a glance

WHAT IT’S REALLY ABOUT

Microsoft CTO Kevin Scott on AI Platforms, Partnerships, and Purpose

  1. Kevin Scott traces his unlikely path from rural Virginia to Microsoft CTO and explains how that background shapes his conviction that AI must broadly benefit society. He details Microsoft’s strategic bet on large-scale AI: consolidating GPU resources, partnering deeply with OpenAI, and co-building supercomputing infrastructure with NVIDIA to enable platform-scale models. Scott argues that AI’s real impact comes from assistive, “copilot” products and a stack that blends large models, orchestration, retrieval, and safety layers, rather than models as standalone products. He also emphasizes balancing optimism about AI’s potential in areas like education and healthcare with serious, proactive work on safety, regulation, and responsible deployment.

IDEAS WORTH REMEMBERING

5 ideas

Models and infrastructure are not products; hard problems are where value lies.

Scott stresses that simply “adding an LLM” is not enough; the most important products will be those that turn previously impossible tasks into hard but feasible ones, in the same way smartphones enabled non-obvious apps like TikTok and DoorDash rather than just early novelty apps.

Concentrated, conviction-driven investment in compute is a strategic advantage.

Microsoft stopped “peanut butter spreading” GPUs and instead centralized capital-intensive compute around high-conviction AI efforts, enabling the scale necessary for frontier models like GPT‑3 and beyond.

AI is evolving into a platform best delivered through assistive copilots.

From GitHub Copilot to Microsoft 365 and Bing Chat, Scott describes a generalized copilot pattern: LLMs orchestrated with tools, retrieval, prompts, plugins, and safety filters to assist humans in domain-specific workflows rather than replace them.

Open source and closed models will coexist in a portfolio of systems.

Real-world deployments already use multiple models for cost, latency, and quality tradeoffs; Scott is excited by open-source innovation but notes that robust safety and responsible AI practices must evolve alongside it.

AI can dramatically widen who can build with advanced tools.

Tasks that once required deep ML expertise and months of work can now be done in hours by far less specialized users; Scott sees this accessibility as a path to more equitable opportunity for people far from traditional tech hubs.

WORDS WORTH SAVING

5 quotes

Models aren’t products, and infrastructure isn’t a product.

Kevin Scott

Probably the place where the most interesting products are, are where you’ve made the phase change from impossible to hard.

Kevin Scott

We will no longer peanut butter these resources around.

Kevin Scott, on centralizing Microsoft’s GPU budget

There’s no historical precedent where you get all of these beneficial things by starting from pessimism first. Pessimism doesn’t get you to optimistic outcomes.

Kevin Scott

Nobody’s trying to regulate frivolous things.

Kevin Scott, on why regulation signals AI’s real importance

Kevin Scott’s personal journey from rural upbringing to Microsoft CTOEarly Google culture, academic talent, and parallels with OpenAIMicrosoft’s AI strategy: transfer learning, GPU allocation, and the OpenAI partnershipBuilding AI supercomputers and infrastructure with Azure and NVIDIAClosed vs open source models and the emerging “copilot” application stackProduct thinking in the LLM era and what makes AI products truly meaningfulSocietal impact: education, work futures, and the regulation and safety of AI

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