Google Makes More Money on Windows Than Microsoft, says Satya Nadella

Microsoft CEO Satya Nadella in a recent podcast revealed that Google earns more revenue from Windows than Microsoft itself. 

“Google makes more money on Windows than all of Microsoft,” Nadella said, discussing the company’s strategy to reclaim lost market share in the browser space. 

Nadella spoke about the search war between Microsoft and Google, pointing out that despite Microsoft Windows having a distribution advantage, Google ultimately won the battle. “Chrome became the dominant browser, which is a real travesty because we had won against Netscape only to lose to Google. And we are getting it back now in an interesting way, both with Edge and with Co-Pilot,” he said. 

He explained that Windows being an open system makes it possible for all other AI tools to have an equal shot, whether it’s OpenAI’s ChatGPT or Google Gemini. 

He further added that he had been trying to secure a search deal with Apple for quite some time but was happy when OpenAI got it. “I’ve been trying to get an Apple search deal for like 10 years, and so when Tim finally did a deal with Sam, I was the most thrilled person. It’s better to have ChatGPT get that deal than anybody else because we have both a commercial and investor relationship with OpenAI,” said Nadella.

Nadella further discussed the competition between major players like Google, Amazon, Meta, and OpenAI in the AI race. He acknowledged that OpenAI is a key contender in the market but added that “it’s going to be very competitive,” though “not win or take all.”

Addressing the shift in consumer expectations, Nadella pointed out the growing competition between traditional search engines and AI-driven tools like ChatGPT. “Search was a stateless experience, but now these agents, like GPT, are becoming stateful,” he said. 

Despite this, he acknowledged Google’s advantage due to its distribution network on mobile and through default placements on Apple and Android devices.

Looking ahead, Nadella expressed confidence in Microsoft’s efforts to regain browser market share and promote its AI tools. “We get to relitigate,” he said, pointing to the opportunity to win back market share. “This is the best news for Microsoft shareholders—that we lost so badly that we can now go contest it and win back some share,” he said. 

Last year, Nadella testified in an antitrust trial against Google, addressing its dominance in the search market. During his testimony, he warned of a “nightmare” scenario for the internet if Google’s monopolistic behaviour continues. 

He explained how agreements with device manufacturers, including Apple, secure Google’s position as the default search engine for millions. Nadella said, “You get up in the morning, you brush your teeth, and you search on Google. With that level of habit forming, the only way to change is by changing defaults.”