AI now writes 30% of Microsoft’s code, CEO Satya Nadella says

Microsoft CEO Satya Nadella on Tuesday said that as much as 30% of the company’s code is now written by artificial intelligence.

Speaking onstage at Meta’s inaugural LlamaCon event, Nadella told a live audience that a growing portion of Microsoft’s codebase is being generated by AI tools.

“I’d say maybe 20%, 30% of the code that is inside of our repos today and some of our projects are probably all written by software,” he said in conversation with Meta CEO Mark Zuckerberg.

That percentage, according to Nadella, is only going up. And he’s not alone in this shift.

From Microsoft to Meta: How AI Is Quietly Replacing Human Developers

Zuckerberg didn’t share an exact figure for Meta, but said the company is training models that could soon build the next generation of Meta’s Llama models themselves. “Our bet is sort of that in the next year probably … maybe half the development is going to be done by AI, as opposed to people, and then that will just kind of increase from there,” he said.

AI coding isn’t just speculation anymore. AI isn’t assisting with code — it’s writing it. And we’re not talking autocomplete. This is “vibe coding” territory — where entire applications are spun up from a few sentences of input.

Both companies employ tens of thousands of developers. But it’s becoming clear that they expect a growing slice of engineering output to come from machines, not humans.

This trend isn’t limited to Meta and Microsoft. Google CEO Sundar Pichai said in October that more than 25% of new code at Google is AI-generated. Shopify CEO Tobi Lütke recently told employees they’ll need to prove AI can’t do a job before they request new hires. And Duolingo CEO Luis von Ahn said in a company memo that AI will gradually replace contractors.

It’s part of a bigger shift across the tech industry. Since ChatGPT hit the scene in late 2022, companies have been figuring out how to plug AI into everything — from customer support to writing marketing emails to building actual products.

OpenAI, the company behind ChatGPT, is reportedly in talks to acquire Windsurf, a startup that builds AI tools capable of generating entire programs with just a few prompts.

The pitch is simple: AI writes more code, companies ship faster. But this shift is raising new questions about software jobs, team dynamics, and what engineering looks like in the years ahead. For now, though, the message from Big Tech is loud and clear — AI isn’t just part of the workflow anymore. It’s writing the code.