The Next Wave - AI and The Future of Technology

Microsoft AI CEO: The AI Future You’re Not Ready For

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Aug 26, 2025

Mustafa Suleyman, CEO of Microsoft AI and co-founder of DeepMind, dives into the rapidly evolving world of artificial intelligence. He discusses the concept of agentic AI, which can plan and act autonomously, and debunks myths about AI's capabilities, including the intriguing nature of hallucinations being features instead of bugs. Suleyman shares insights on integrating AI into daily tasks and the competitive landscape of software innovation, revealing how anyone can develop products in minutes, transforming the future of technology.

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INSIGHT

Big Models Teach Small Ones

Progress will continue via both larger models and smarter distillation into smaller models.
Mustafa describes an efficient frontier where big models teach smaller, task-specific models cheaply.

INSIGHT

Reframing Hallucinations

Hallucination is a misleading term and can be useful for creativity and interpolation.
Models are becoming easier to steer, cite sources, and adhere to behavior policies as they scale.

ADVICE

Build Trust With Verifiable Sources

Build trust by surfacing verifiable citations and admitting uncertainty.
Mustafa says systems that know when they don't know will earn user trust and improve with usage.

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Episode 73: What’s really holding back the future of AI—and are we truly prepared for what comes next? Matt Wolfe (https://x.com/mreflow) is joined by Mustafa Suleyman (https://x.com/mustafasuleyman), legendary AI innovator, co-founder of DeepMind, former founder of Inflection AI, and now CEO of Microsoft AI, where he’s leading the massive Copilot transformation.

This episode unpacks the myths around AI’s “training wall,” whether hallucinations are actually a feature instead of a bug, the dawn of the agentic era—where AIs don’t just chat, but plan and act for you—and the shifting landscape for software builders as anyone can ship products in minutes. Mustafa also shares firsthand stories and practical advice for leveraging today’s AI—from offloading tasks to agents THIS WEEK, to why moats aren’t about headcount or credentials in the new era.

Check out The Next Wave YouTube Channel if you want to see Matt and Nathan on screen: https://lnk.to/thenextwavepd

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Show Notes:

(00:00) AI Insights with Mustafa Suleyman
(03:31) Adapting AI Amid Data Challenges
(07:31) Technology's Misleading Terminology
(12:16) Tool Use Defines Human Progress
(15:49) Revolutionizing Code with AI Tools
(16:31) Competitive Innovation Boom Ahead

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Mentions:

Mustafa Suleyman: https://mustafa-suleyman.ai/
Microsoft AI: https://www.microsoft.com/en-us/ai
DeepMind: https://deepmind.google/
Inflection: https://inflection.ai/

Get the guide to build your own Custom GPT: https://clickhubspot.com/tnw

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Check Out Matt’s Stuff:

• Future Tools - https://futuretools.beehiiv.com/

• Blog - https://www.mattwolfe.com/

• YouTube- https://www.youtube.com/@mreflow

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Check Out Nathan's Stuff:

Newsletter: https://news.lore.com/
Blog - https://lore.com/
The Next Wave is a HubSpot Original Podcast // Brought to you by Hubspot Media // Production by Darren Clarke // Editing by Ezra Bakker Trupiano