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Microsoft Corp. CEO Satya Nadella on Sunday warned that enterprises risk giving away proprietary knowledge every time they use artificial intelligence, adding that companies should retain ownership of the learning generated from their interactions with AI models. <\/p>\n
The Reverse Information Paradox <\/p>\n
In an article titled ‘The Reverse Information Paradox’ posted on X, Nadella drew on economist Kenneth Arrow’s Information Paradox, saying AI has flipped the traditional relationship between buyers and sellers of information. <\/p>\n
Don’t Miss: <\/p>\n
“You essentially pay for intelligence twice, once with money, and again with something even more valuable: the proprietary knowledge you must reveal to make that intelligence useful,” he added. <\/p>\n
https:\/\/t.co\/xv6csf1SbV<\/a> <\/p>\n \u2014 Satya Nadella (@satyanadella) July 12, 2026<\/a> <\/p>\n Calls For Greater Enterprise Control <\/p>\n Nadella said protecting enterprise knowledge requires more than safeguarding data because AI models also learn from prompts, workflows, evaluations, and the corrections users make over time. <\/p>\n He added that those interactions gradually become institutional know-how that competitors cannot easily replicate. <\/p>\n “In consuming intelligence, you are creating intelligence. And what you create should belong to you,” Nadella said. <\/p>\n He added that companies should be able to use AI without transferring the knowledge that makes them unique to model providers. <\/p>\n Trending: Avoid the #1 Investing Mistake: How Your ‘Safe’ Holdings Could Be Costing You Big Time<\/a> <\/p>\n Microsoft holds a roughly 27% stake in OpenAI and has integrated the startup’s models into products including Azure AI, Microsoft 365 Copilot and GitHub Copilot. <\/p>\n In June, the Microsoft CEO said the AI future dominated by a handful of models could concentrate economic value and weaken businesses’ competitive advantages, calling instead for a broader AI ecosystem. <\/p>\n The Essay Draws Attention <\/p>\n London School of Economics professor Luis Garicano described Nadella’s essay as “smart econ thinking” and said Europe may see established technology companies such as Microsoft and Amazon.com Inc. as partners in implementing more controlled AI. <\/p>\n Three reactions \u2014 Luis Garicano \ud83c\uddea\ud83c\uddfa\ud83c\uddfa\ud83c\udde6 (@lugaricano) July 12, 2026<\/a> <\/p>\n See Also: Skip the Regrets: The Essential Retirement Tips Experts Wish Everyone Knew Earlier.<\/a> <\/p>\n Microsoft AI executive Nicolas Bustamante expanded on Nadella’s thesis, saying enterprises are increasingly accumulating learning, not just data. <\/p>\n He said organizations will increasingly focus on owning the intelligence created through those interactions rather than allowing it to become part of someone else’s learning loop. <\/p>\n Large neural networks are a bit like black holes for know-how. The more useful you want them to be, the more you feed them: your workflows, your corrections, your evals, your judgment, your taste, your edge\u2026<\/p>\n And once that knowledge is absorbed into someone else’s learning loop,\u2026 https:\/\/t.co\/AJaSdOTe7s<\/a> <\/p>\n \u2014 Nicolas Bustamante (@nicbstme) July 12, 2026<\/a> <\/p>\n Benzinga edge rankings indicate MSFT has a Momentum score in the 12th percentile and a Growth score in the 54th percentile. <\/p>\n Photo courtesy: Shutterstock <\/p>\n Read Next: Think you’re saving enough for your kids? You might be dangerously off \u2014 see why<\/a> <\/p>\n Building Wealth Across More Than Just the Market <\/p>\n Building a resilient portfolio means thinking beyond a single asset or market trend. Economic cycles shift, sectors rise and fall, and no one investment performs well in every environment. That’s why many investors look to diversify with platforms that provide access to real estate, fixed-income opportunities, precious metals, and even self-directed retirement accounts. By spreading exposure across multiple asset classes, it becomes easier to manage risk, capture steady returns, and create long-term wealth that isn’t tied to the fortunes of just one company or industry. <\/p>\n Arrived <\/p>\n Backed by Jeff Bezos, Arrived Homes makes real estate investing accessible with a low barrier to entry. Investors can buy fractional shares of single-family rentals and vacation homes starting with as little as $100<\/a>. This allows everyday investors to diversify into real estate, collect rental income, and build long-term wealth without needing to manage properties directly. <\/p>\n FarmTogether <\/p>\n Farmland has historically held its value through market volatility and delivered returns uncorrelated to stocks and bonds. For accredited investors, FarmTogether offers direct access to high-quality U.S. farmland starting at $15,000<\/a> \u2014 fully managed, with no landlord headaches. <\/p>\n Immersed <\/p>\n Immersed is building technology for the future of work through spatial computing.<\/a> Known for its AR\/VR productivity platform that enables users to work across multiple virtual screens, the company has grown to more than 1.5 million users worldwide. Immersed is also developing Visor, a lightweight headset designed specifically for professional productivity, positioning the company at the intersection of remote work, extended reality (XR), and next-generation computing. <\/p>\n Fundrise <\/p>\n Private real estate and private credit can add income and stability to a stock-heavy portfolio. Fundrise offers access to diversified private real estate<\/a> and credit strategies through an easy-to-use platform, with professionally managed portfolios designed to generate passive income and long-term growth. <\/p>\n Realberry <\/p>\n Institutional-quality real estate has traditionally been difficult for individual investors to access. Realberry gives accredited investors direct access to private real estate opportunities <\/a>backed by a team with 35 years of experience, $3.4 billion in assets under management, and $481 million in cumulative distributions paid to investors as of Q4 2025, according to the company. With a portfolio spanning 13 million square feet across seven U.S. states, Realberry focuses on acquiring, developing, and managing real estate with an emphasis on long-term value creation while its principals often invest alongside clients to help align interests. <\/p>\n Mode Mobile <\/p>\n Mode Mobile is changing the way people interact with their phones by letting users earn money from the same apps and activities they already use every day.<\/a> Instead of platforms keeping all the advertising revenue, Mode Mobile shares a portion back with users who engage with content, play games, and scroll on their devices. Named one of Deloitte’s fastest-growing software companies in North America, the company has built a large beta user base and is scaling a model that turns everyday smartphone usage into a potential income stream.\u00a0 <\/p>\n EquityMultiple\u00a0 <\/p>\n For accredited investors looking beyond stocks and bonds, EquityMultiple provides access to vetted commercial real estate deals starting at $5,000<\/a>,<\/a> with only ~5% of opportunities passing their due diligence process. <\/p>\n \u00a9 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. <\/p>\n","protected":false},"excerpt":{"rendered":"Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Microsoft…\n","protected":false},"author":2,"featured_media":105691,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[25,420,7829,54792,54793,320,419,7828,146,54794,51100,2806],"class_list":["post-105690","post","type-post","status-publish","format-standard","has-post-thumbnail","category-microsoft","tag-artificial-intelligence","tag-azure","tag-azure-ai","tag-information-paradox","tag-luis-garicano","tag-microsoft","tag-microsoft-365","tag-microsoft-ai","tag-microsoft-corp","tag-nicolas-bustamante","tag-proprietary-knowledge","tag-satya-nadella"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/105690","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/comments?post=105690"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/105690\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media\/105691"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media?parent=105690"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/categories?post=105690"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/tags?post=105690"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
1. I agree. Jes\u00fas Saa-Requejo and I have been writing along these lines.
2. Smart econ thinking \u00f1deployed throughout. You can see the @UChicago<\/a> education everywhere in @satyanadella<\/a>.
3. Europe may think of old-tech (MSFT\/Amzn) as allies in trying to implement\u2026 https:\/\/t.co\/I8NNACE4yD<\/a> <\/p>\n