Microsoft singles out Google’s competitive edge in generative AI

Microsoft has informed EU antitrust regulators that Google holds a competitive advantage in generative artificial intelligence (AI) thanks to its extensive data resources and AI-optimized chips. This disclosure highlights the ongoing rivalry between the two tech giants.

Microsoft’s remarks highlight the competitive advantage Google holds in generative artificial intelligence, attributed to its extensive data repository and AI-optimized chips. These observations were provided in response to a consultation initiated by the European Commission regarding the competitiveness of the generative AI landscape.

The increasing adoption of generative AI, highlighted by platforms like Microsoft-backed OpenAI’s ChatGPT and Google’s chatbot Gemini, has raised apprehensions regarding the spread of misinformation and fake news.

In its report to the Commission, Microsoft emphasized the singular position of Google as the sole vertically integrated company, possessing strength and independence across all AI layers, from chips to a successful mobile app store. Other companies, Microsoft pointed out, are compelled to forge partnerships to drive innovation and remain competitive.

In its report to the Commission, Microsoft highlighted that currently, Google stands out as the sole vertically integrated company in the AI realm, possessing strength and independence across all layers from chips to a flourishing mobile app store. Other companies, Microsoft noted, are compelled to foster partnerships to drive innovation and stay competitive.

Microsoft emphasized that Google’s strategy of producing its own AI semiconductors will grant it a significant competitive edge in the foreseeable future. Additionally, Google’s access to extensive proprietary data from platforms like Google Search Index and YouTube empowers it to train its substantial language model, Gemini.

Microsoft pointed out that YouTube offers an unmatched array of video content, with an estimated 14 billion videos hosted on the platform. While Google has access to this rich content, other AI developers lack similar access, giving Google a unique advantage in leveraging such vast and diverse data for AI development.

Microsoft highlighted that AI-powered voice assistants like Google’s Google Assistant and Apple’s Siri provide significant advantages to both companies in the AI landscape.

Microsoft noted that both Google and Apple are well-positioned to evolve and capitalize on their existing voice assistants, positioning themselves as leaders in generative AI. New entrants and competitors in the AI space will not have the same advantages as Google and Apple, according to Microsoft’s analysis.

Microsoft, with its substantial investment of over US$10 billion ($15.2 billion) in OpenAI, finds itself under scrutiny from EU antitrust regulators. Despite this, Microsoft aims to address regulatory concerns regarding partnerships between Big Tech companies and startups in the AI sector.“It said all of these start-ups relied on various forms of investments and partnerships that facilitated their entry and growth in the field.”

It highlighted examples such as Anthropic, which counts Google and Amazon among its investors, France’s Mistral, in which Microsoft has invested 15 billion euros, and Canada’s Cohere, backed by investors like Salesforce and Nvidia.“Microsoft emphasized that promoting pro-competitive partnerships in the AI domain is an effective strategy to prevent companies from achieving vertical integration that could lead to an anticompetitive advantage.”