Nadella has previously advocated for companies to build a "human capital + token capital" dual cycle in public forums, citing economist Kenneth Arrow's information paradox, pointing out that after accumulating data in the cloud era, companies need to accumulate proprietary learning in the AI era to avoid the commodification of knowledge.

On the capital path, Microsoft helps companies deploy their own agent systems and fine-tune models through multi-model strategies and sovereign cloud options like Azure AI Foundry, mobilizing computing resources and governance frameworks. The motivation is to allow customers to retain a "hill-climbing" style of continuous optimization loop, rather than relying on external foundational models, thereby locking in long-term subscription and infrastructure revenue.

Similar to Palantir's emphasis on customers having absolute control over computation, models, and data, Microsoft is currently in a phase of expanding from foundational model competition to enterprise sovereign AI platforms, strengthening global deployment through significant investments in regions like India.

Essentially, this is a transfer of pricing power: as AI models become commoditized, value shifts from general intelligence to enterprise-specific knowledge encoding and learning systems. The mechanism is that proprietary "tailpipe" data from companies forms an irreplicable competitive barrier, prompting capital to shift from renting models to building self-learning infrastructure to control economic destiny.

ABAB News · Cognitive Law

Consuming AI is creating AI; ownership determines who captures long-term value.
Enterprise learning = human judgment × proprietary tokens; renting equals outsourcing the brain.
Unidirectional leakage of knowledge creates monopolies; bidirectional control can promote inclusive innovation.