Microsoft has informed EU antitrust regulators that Google holds a competitive advantage in generative artificial intelligence (AI) due to its extensive data repository and AI-optimized chips. This underscores the ongoing rivalry between the two tech giants.
In response to a consultation initiated by the European Commission regarding competition in generative AI, Microsoft singled out Google’s dominance in this field. The rise in popularity of generative AI, exemplified by initiatives like Microsoft-backed OpenAI’s ChatGPT and Google’s Gemini chatbot, has raised concerns about misinformation and fake news.
Microsoft highlighted Google’s vertical integration across various AI layers, from chips to mobile app stores, as a significant advantage. It emphasized that while Google benefits from self-supplied AI semiconductors and access to vast proprietary data from platforms like Google Search Index and YouTube, other AI developers lack such resources.
For instance, Microsoft pointed out YouTube’s unmatched repository of video content, hosting an estimated 14 billion videos, which provides Google with unique training data for its large language model, Gemini.
Additionally, Microsoft acknowledged the advantage enjoyed by Google and Apple in the realm of AI-powered voice assistants, citing Google Assistant and Apple’s Siri as examples. These companies are well-positioned to leverage their existing voice assistant platforms to lead in generative AI.
Addressing concerns about partnerships between Big Tech firms and startups, Microsoft argued that such collaborations foster competition and innovation in the AI space. It cited examples like Anthropic (backed by Google and Amazon), France’s Mistral (in which Microsoft has invested), and Canada’s Cohere (with investments from Salesforce and Nvidia) as instances where partnerships have facilitated market entry and expansion.
Microsoft advocated for the promotion of pro-competitive partnerships in AI to prevent vertical integration that could lead to anti-competitive advantages. It emphasized the importance of regulatory frameworks that encourage innovation while ensuring fair competition in the AI sector.
