Tesla (NASDAQ:TSLA) CEO Elon Musk endorsed Microsoft (NASDAQ:MSFT) Satya Nadella’s perspective on the practical impact of AI, emphasizing its benefits to sectors like healthcare, education, and productivity.
What Happened: Musk, on X, supported Nadella’s views on AI’s progress, which were shared in a post by Nadella on June 25, 2025. Nadella, the CEO of Microsoft Corp. (NASDAQ:MSFT), had stressed the importance of AI’s real-world outcomes over technical benchmarks at Y Combinator’s AI Startup School wherein Elon Musk commented “True”. Nadella stated that AI must produce results that are “socially useful.”
This shift in focus aligns with recent studies indicating AI’s potential to enhance GDP growth by addressing real-world challenges.
“If we really are not creating social surplus, economic surplus, as measured by countries and communities, we just can’t consumer energy.” stated Nadella.
“The real question in the next five years is we’ve got to produce enough products that are creating great value,” he added.
He also pointed out that the true measure of AI’s progress lies in its ability to improve real-world outcomes rather than just achieving technical benchmarks.
Why It Matters: Musk’s endorsement of Nadella’s view on AI’s real progress comes at a time when the tech industry is witnessing a shift towards focusing on the practical impact of AI.
CEO Satya Nadella believes that while AI is already driving major scientific breakthroughs, its full transformative potential will be unlocked with the integration of quantum computing. Meanwhile, the growing role of AI in healthcare was highlighted, with Nvidia Corp (NASDAQ:NVDA) partnering with Novo Nordisk A/S (NYSE:NVO) to speed up drug discovery and development.
However, Wall Street remains divided on AI's future—while some investors are optimistic about its disruptive potential, others express concerns over associated risks and the lack of transparency in how it is being managed.
On a year-to-date basis, ARK Innovation ETF (NYSE:ARKK) and Global X Artificial Intelligence & Technology ETF (NASDAQ:AIQ) climbed 24.85% and 13.05%, respectively.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
