Satya Nadella flips a Nobel economist’s paradox warning AI buyers about a hidden cost

Microsoft CEO Satya Nadella has flipped Nobel economist Kenneth Arrow’s Information Paradox to warn AI buyers about a hidden cost. In his “Reverse Information Paradox” essay, Nadella says enterprises pay for intelligence twice—with money and proprietary knowledge. As firms feed AI models their expertise, the seller learns more while the buyer learns little in return.