Nadella tells us that before the OpenAI partnership, Google was its biggest AI competitor.

TL;DR

Google was Microsoft's biggest AI competitor before the OpenAI partnership.
The OpenAI partnership was a significant decision for Microsoft, involving the use of scarce resources.
Microsoft accepted the risk of investing in OpenAI due to its core ethos as a platform and partner company.
The goal of such partnerships is to create long-term, stable, win-win relationships.

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