Microsoft CEO Satya Nadella warns of AI market concentration as tech stocks tumble

Global technology equities continued to decline, with SoftBank losing 12% after its chip designer ARM Holdings fell sharply. Microsoft shares have dropped nearly 30% this year, while analysts caution that rising AI infrastructure costs could further hurt the sector. Despite the downturn, some investors still see upside in Nvidia, which analysts project could trade above $210 per share.

In a Wall Street Journal interview, Microsoft chief executive Satya Nadella said the current AI model is unsustainable and that society will not tolerate a handful of companies controlling all AI learning. He highlighted the need for tangible benefits in health, education and productivity to retain public support. Nadella noted Microsoft’s effort to offer lower‑cost AI models, launch the Copilot Co‑Worker agent, and consider adding DeepSeek’s technology, aiming for a more distributed AI ecosystem.

The remarks come as the tech sector grapples with high demand for AI‑driven data‑center capacity, component shortages, and concerns over market concentration among firms such as OpenAI, Anthropic and Google.