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Microsoft has a problem: lack of demand for its AI products

(www.windowscentral.com)
306 points mohi-kalantari | 2 comments | 08 Dec 25 16:54 UTC | HN request time: 0.7s | source
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outside1234 ◴[08 Dec 25 17:11 UTC] No.46194839[source]▶
Microsoft has a problem that they hire the middle block of talent in the market. They do not chase the top 20% most expensive nor the bottom 20% least expensive.

But this also means they end up with average products. They don't have the talent to do something exceptional.

This has worked well for them when they can just come in and copy something (say AWS in Azure) and not pay the innovation cost, but AI seems different for some reason, perhaps in the same way search was. You need the top 20% in order to really be successful.

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1. Hasz ◴[08 Dec 25 17:38 UTC] No.46195196[source]▶
this is just not true. Building great products with average talent is a sign of great management, and it's been done before in both business and sports. moneyball is about this idea at some level.

Plenty of SV is building below average products with exceptional talent.

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2. lateforwork ◴[08 Dec 25 17:43 UTC] No.46195278[source]▶
> Building great products

This is where they are failing.

> Plenty of SV is building below average products with exceptional talent.

Yes, you can hire exceptional talent and give them poor directions, resulting in poor products.

But to hire mediocre talent and still produce competitive products you must have an unfair advantage of some sort. The Windows and Office monopolies gave Microsoft that unfair advantage. But it is becoming clear that this unfair advantage does not extend to AI.