Satya Nadella warns enterprises are giving away IP while paying for AI tools

Microsoft CEO Satya Nadella has cautioned businesses that using AI comes at a dual cost: money and proprietary knowledge. In a widely shared post that garnered 5.7 million views, he coined the term 'Reverse Information Paradox' to describe how every AI interaction — prompts, evaluations, and corrections — leaks institutional expertise to model providers. Nadella also highlighted an imbalance where vendors benefit from fair use provisions while buyers face restrictive terms. To address these concerns, he proposed a five-point framework centered on Control, Capability, Choice, Cost, and Compound.