Google’s unit Alphabet (GOOGL.O) asserts a competitive edge in generative artificial intelligence, leveraging its extensive data and AI-optimized chips. This underscores the rivalry between Google and Microsoft (MSFT.O), as Microsoft communicates to EU antitrust regulators.
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Microsoft responded to a call for opinions on the degree of competition in generative AI issued by the European Commission in January. These remarks were provided by Microsoft.
The rising popularity of generative AI has raised concerns over false information and fake news. This trend is best exemplified by Google’s chatbot Gemini and Microsoft-backed OpenAI’s ChatGPT, both capable of producing human-like responses to written instructions.
“Today, only one company – Google – is vertically integrated in a manner that provides it with strength and independence at every AI layer from chips to a thriving mobile app store. Everyone else must rely on partnerships to innovate and compete,” Microsoft said in its report to the Commission.
Google claimed that it would have a competitive advantage going forward. This is due to its self-supply AI semiconductors and the enormous amounts of proprietary data it used to train its massive language model Gemini from YouTube and Google Search Index.
“YouTube provides an unparalleled set of video content; it hosts an estimated 14 billion videos. Google has access to such content; but other AI developers do not,” Microsoft said.
AI-powered voice assistants, such as Apple’s Siri and Google’s Google Assistant, offer a competitive edge to businesses. They stated this in their report.
“They are well-positioned to evolve and leverage their respective existing voice assistants into leadership positions in generative AI. New entrants and competitors of Google and Apple will not enjoy the same advantages,” Microsoft said.
Google retaliated against Microsoft.
“We 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,” a representative for Google stated.
Microsoft has attempted to allay regulatory concerns about such collaborations between Big Tech and startups. Currently, EU antitrust authorities are investigating its more than $10 billion investment in OpenAI.
“All of these start-ups relied on different forms of investments and partnerships that enabled them to enter and expand in the space,” it said.
Three companies were included in the investment portfolio: Mistral in France, where Microsoft has invested 15 billion euros, Anthropic, backed by Google and Amazon (AMZN.O), and Cohere in Canada, backed by Nvidia and Salesforce.
“Encouraging pro-competitive partnerships in the AI space is an effective way to prevent companies from becoming vertically integrated in a manner that would result in an anticompetitive advantage,” Microsoft stated.
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