Microsoft Highlights Google’s Superiority In Generative AI

Microsoft Highlights Google's Superiority In Generative AI

The competition between Google and Microsoft is highlighted by Microsoft telling EU antitrust inspectors that Google has a competitive edge in generative artificial intelligence because of its wealth of data and AI-optimized hardware.

Google unit Microsoft has informed EU antitrust regulators that Google has a competitive advantage in generative artificial intelligence thanks to its wealth of data and AI-optimized chips, highlighting the rivalry between the two tech giants.

Microsoft’s remarks responded to a call for comments on the degree of competition in generative AI that the European Commission issued in January.

Google’s data advantage and vertical integration

Microsoft’s report to the European Commission highlights Google’s vertical integration across multiple AI layers, from semiconductor production to a robust mobile app store. Google, in contrast to other players, has strength and independence at every level, giving it a significant advantage. The report highlights Google’s proprietary data trove, derived from sources like YouTube and the Google Search Index, as crucial in training its advanced language models, such as Gemini. 

Microsoft stated that YouTube provides an unparalleled set of video content; it hosts an estimated 14 billion videos. They also said that Google has access to such content, but other AI developers do not.

The report also raises concerns about the potential misuse of generative AI, particularly in the spread of misinformation and fake news. Examples of this include Microsoft-backed OpenAI’s ChatGPT and Google’s Gemini.

Also read: Authors Concerned as AI-Generated Books Fill Amazon Shelves Again

Microsoft also emphasized the benefit that AI-driven voice assistants; like Apple’s Siri and Google Assistant, bring to strengthening the positions of their respective companies in the generative AI space. 

Additionally, Microsoft said that they are well-positioned to evolve and leverage their respective existing voice assistants into leadership positions in generative AI. They added that new entrants and competitors of Google and Apple will not enjoy the same advantages.

According to the report, major companies like Apple and Google are in a good position to take advantage of their current voice assistant infrastructure and keep their positions as leaders in this developing market.

Furthermore, Microsoft supports pro-competitive partnerships to prevent monopolistic tendencies, citing companies like Anthropic, Mistral, and Cohere as examples of how these partnerships have fostered innovation and competition in the AI sector. These companies have received investments from major tech companies like Google, Amazon, Microsoft, Salesforce, and Nvidia.

Google replies Microsoft

According to a Google spokesperson, they hope the Commission’s study will shine a light on companies that don’t offer the openness of Google Cloud or have a long history of locking in customers – and who are bringing that same approach to AI services.

Microsoft also attempted to allay regulatory concerns about such collaborations between Big Tech and startups, with its more than $10 billion investment in OpenAI currently under investigation by EU antitrust authorities.

It said that all of these start-ups relied on different forms of investments and partnerships that enabled them to enter and expand in the space.

It pointed to Anthropic which has Google and Amazon as investors, France’s Mistral in which Microsoft has invested 15 million euros, and Canada’s Cohere which has Salesforce and Nvidia as investors.

Microsoft stated that one effective strategy to stop businesses from vertically integrating in a way that would give them an anti-competitive advantage is to support pro-competitive partnerships in the AI space.

Google’s software engineer mocked the company’s attempts to shift its focus to artificial intelligence, describing the company’s executives as “profoundly boring and glassy-eyed.”

The Massachusetts-based engineer, Diane Theriault didn’t hold back in the post. She wrote that all of these boring, glassy-eyed leaders are trying to point in a vague direction (AI) while at the same time killing their golden goose. However, Diane was responding to the latest round of layoffs, which affected hundreds of employees in the company’s ad sales team.

RELATED TOPICS: AI, Gen AI, Google, Microsoft
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