Alphabet (GOOGL.O), new tab Microsoft (MSFT.O), opens new tab warned EU antitrust investigators that Google's data and AI-optimized hardware give it an edge in generative artificial intelligence, highlighting their rivalry. Microsoft's comments followed a January European Commission survey on generative AI competition.
The rise of generative AI, such as Microsoft-backed OpenAI's ChatGPT and Google's chatbot Gemini, has raised concerns about misinformation and fake news. Today, only Google is vertically integrated, giving it strength and independence at every AI layer from semiconductors to a successful mobile app store. Microsoft reported to the Commission that everyone else must innovate and compete through partnerships.
A massive set of proprietary data from Google Search Index and YouTube allowed Google to train its large language model Gemini, and its self-supply AI chips would provide it a competitive advantage for years to come.
"With 14 billion videos, YouTube has unmatched material. "Google has such content, but not other AI developers," Microsoft stated. It said AI-powered voice assistants like Google Assistant and Apple's (AAPL.O), opens new tab Siri benefit both companies.
They can evolve and lead generative AI with their voice assistants. Microsoft claimed new entrants and Apple and Google competition will not have the same advantages.
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 rep stated.
Microsoft, whose $10 billion investment in OpenAI is under EU antitrust scrutiny, has sought to allay regulatory concerns about Big Tech-start-up alliances. "All of these start-ups relied on different forms of investments and partnerships that enabled them to enter and expand in the space," stated.
It mentioned Anthropic, which has Google and Amazon (AMZN.O), opens new tab as investors, Mistral, in which Microsoft has spent 15 million euros, and Cohere, which has Salesforce and Nvidia.
"Encouraging pro-competitive partnerships in the AI space is an effective way to prevent companies from becoming vertically integrated in a ma
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