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Microsoft to EU: We don’t have competitive edge of Google and Apple in AI – Times of India

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Microsoft CEO Satya Nadella recently said that Google should have been the “default winner” in the AI race because of the resources and capabilities at its disposal. The company has now mounted its attack on its arch-rival as well as Apple in Europe highlighting that both the tech giants enjoy a competitive edge in generative artificial intelligence.
In a response to a consultation launched by the European Commission in January on generative AI competition in the region, Microsoft said that the Alphabet-owned company has an edge in generative AI space due to the trove of data and AI-optimised chips.
“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, as per news agency Reuters.
As the popularity of generative AI grows, both companies have invested billions in products and services that can generate human-like responses to written prompts. Microsoft has poured billions into OpenAI‘s ChatGPT and Google has been developing LLMs that power its chatbot Gemini.

‘Google has edge in AI due to the data it has’

Microsoft said that not only Google has self-supply AI semiconductors that will give the company a competitive advantage for the years to come, it also has large sets of proprietary data from Google Search Index and YouTube to train its large language model Gemini.
“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.

‘Google, Apple have advantage in AI-powered voice assistants’

Microsoft also targeted both Google and Apple for having advantage in terms of AI-powered voice assistants. Google has ‘Google Assistant’ and Apple owns Siri – both of which are incorporated across company products.
“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 hits back at Microsoft

In a reply, Google pointed at a separate case in the European Union (EU) in which regulators are probing Microsoft’s alleged competitive edge in the Cloud business.
“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 Google spokesperson said.
The EU antitrust regulators are also investigating Microsoft’s more than $10 billion investment in OpenAI. Microsoft has said that companies like Google and Amazon have also invested in startups like Anthropic. Microsoft recently backed France’s Mistral with 15 billion euros backing. Apple has reportedly bought Canadian startup DarwinAI to boost its AI ambitions.

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