Alphabet’s subsidiary Google maintains a competitive edge in generative artificial intelligence, courtesy of its extensive data reservoir and AI-optimized chips, Microsoft informed EU antitrust regulators, highlighting the rivalry between the two tech giants.
Microsoft’s remarks were part of its response to a consultation initiated by the European Commission in January regarding the competitive landscape in generative AI.
The rising prominence of generative AI, exemplified by Microsoft-backed OpenAI’s ChatGPT and Google’s chatbot Gemini, has raised concerns about misinformation and fake news.
“Currently, only one company – Google – is vertically integrated in a manner that provides it with strength and independence across every AI layer, from chips to a thriving mobile app store. Others must rely on partnerships to innovate and compete,” Microsoft stated in its submission to the Commission.
Microsoft emphasized that Google’s in-house AI semiconductor production would confer a lasting competitive advantage, coupled with its vast proprietary data from the Google Search Index and YouTube, which facilitates the training of its extensive language model Gemini.
“Google’s YouTube platform hosts an unparalleled array of video content, estimated at 14 billion videos. Google has access to such content, while other AI developers do not,” Microsoft pointed out.
Regarding AI-powered voice assistants like Google Assistant and Apple’s Siri, Microsoft noted that both companies enjoy an advantageous position.
“They are well-positioned to evolve and leverage their existing voice assistants into dominant positions in generative AI. New entrants and competitors to Google and Apple will not have the same advantages,” Microsoft commented.
Google responded to Microsoft’s assertions, expressing hope that the Commission’s investigation would illuminate companies lacking the openness of Google Cloud or resorting to customer lock-in strategies, especially in AI services.
Microsoft, currently under EU antitrust scrutiny for its over $10 billion investment in OpenAI, also addressed regulatory concerns about collaborations between major tech firms and startups.
“All these startups relied on various forms of investments and partnerships to enter and expand in the space,” Microsoft noted.
The company highlighted Anthropic, with investments from Google and Amazon, Mistral in France (backed by Microsoft with 15 million euros), and Cohere in Canada (with investments from Salesforce and Nvidia).
“Encouraging pro-competitive partnerships in the AI sector is an effective strategy to prevent companies from becoming vertically integrated in ways that would confer anticompetitive advantages,” Microsoft concluded.
