Key to understanding the change are the three words “generational platform shift.” It’s a shorthand way of saying that AI will transform the tech world and worldwide culture, and companies that take advantage of it will thrive, while those who don’t will be left behind. By focusing primarily on AI development, Nadella believes he can ensure Microsoft takes advantage of the generational shift. He recognizes there are times when tech companies can flourish by focusing on management and sales, and other times, such as now, when they need to go all in on developing new technology.

In Silicon Valley, there’s a term for when head of a company does what Nadella is doing and devotes his or her energies primarily to tech: founder mode. He’s worked at Microsoft for 33 years, and he saw how tech-savvy founder Bill Gates built the company into a tech behemoth, and how marketing-and-sales guy Steve Ballmer sent the company into a tailspin when he missed out on mobile computing, social media, and other groundbreaking technologies. 

Nadella’s move is a clear indicator he doesn’t want something similar to happen on his watch.