🦔Microsoft's internal strategy document for its new AI assistant Scout says the explicit goal of phase one is to "make people addicted." The doc, obtained by 404 Media, outlines a three-phase plan from "addictive app to agentic platform."
The tool sits on your desktop, manages your calendar, triages your inbox, files expenses, and acts on your behalf. It requires access to your accounts and files. Security and compliance are things to "figure out" later. Nadella already uses it.
My Take
After everything this week, I think this document accidentally explains the entire AI business model. Not just Microsoft's, everyone's. The product can't sustain itself on current pricing. We know that because Copilot just proved it on Monday. The unit economics don't work at flat rate. So the play is to get people locked in before the real bill arrives. Make the tool essential to how you work, let your company cut the people who used to do those tasks, and by the time consumption pricing kicks in, walking away costs more than paying up.
IBM's CEO just told us the industry needs $6 to $8 trillion in capex to chase revenue he says doesn't exist. Google diluted shareholders to fund a buildout it can't cover from cash flow. Oracle fired 30,000 people during a record quarter to redirect salaries into data centers. And Microsoft's answer to all of that is an internal doc where step one is addiction. They're not selling the product on value. They're selling dependency. Get people hooked before anyone calculates what it costs to run, and make sure they can't leave once they find out. A product that needs addiction to survive is a product that can't survive on its own.
Hedgie🤗
404media.co/microsoft-wants-…