Microsoft CEO Satya Nadella gestures as he speaks during the World Economic Forum (WEF) annual meeting in Davos on January 20, 2026. (Photo by Fabrice COFFRINI / AFP via Getty Images)
Fabrice Coffrini | Afp | Getty Images
Energy costs will be key to deciding which country wins the AI race, Microsoft CEO Satya Nadella has said.
As countries race to build AI infrastructure to capitalize on the technology’s promise of huge efficiency gains, Nadella told the World Economic Forum (WEF) on Tuesday that “GDP growth in any place will be directly correlated” to the cost of energy in using AI.
He pointed to a new global commodity in “tokens” — basic units of processing that are bought by users of AI models, allowing them to run tasks.
“The job of every economy and every firm in the economy is to translate these tokens into economic growth, then if you have a cheaper commodity, it’s better.”
“Whenever we come to Europe, everyone’s talking about sovereignty,” he said. “Guess what, Europe actually should be much more concerned about access to their industrial companies, their financial services companies…as opposed to just thinking that somehow, by protecting Europe, you’re going to be competitive.
“You are only going to be competitive if the products coming out of Europe are globally competitive,” he said. “That’s, I think, what needs to change.”