Microsoft Calls Out Google Dominance in Generative AI, Calls for Alliances to Compete
Microsoft believes that Google's extensive data sets give it an edge in the generative AI market. While others rely on partnerships, Google has vertical integration across all layers of AI development, leveraging its access to YouTube content for training its Large Language Model (LLM), Gemini. Microsoft has invested over $10 billion in OpenAI, which is under antitrust investigation. Encouraging pro-competitive partnerships can prevent companies from becoming vertically integrated and gaining an anticompetitive advantage. Satya Nadella, Microsoft's CEO, considers Google the "default winner" due to their resources and capabilities. Google has the talent, compute, data, silicon, models, and products to lead the AI race, according to Nadella. However, Microsoft has faced criticism for its AI-powered productivity tool for Office and Excel, 365 Copilot, which produces harmful content. Nadella acknowledges that tools to reduce unintended AI issues are not perfect and that there will be adversarial attacks on new technology. Microsoft believes alliances in AI are necessary due to the lack of vertical integration in the industry, particularly compared to Google. Microsoft lists several generative AI entrants, including Anthropic, Cohere, Aleph Alpha, and Mistral AI, which are developing and operationalizing generative AI-based technology. Microsoft emphasizes the importance of various components for AI development, such as semiconductors, data, and assistants. Microsoft notes that Google has a significant advantage in terms of data with its search engine index and other datasets, while Microsoft's Bing index is inadequate. Microsoft suggests that partnerships and investments in AI should be encouraged to promote innovation and consumer choice, rather than allowing any player to become "too big too soon."