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Here’s how Google might benefit as Microsoft rumoured to outsource its best AI to OpenAI

Technology

Here’s how Google might benefit as Microsoft rumoured to outsource its best AI to OpenAI

According to a tech CEO, Microsoft intends to give OpenAI their greatest artificial intelligence technologies and software, which may help Google inadvertently. The CEO of identity security company Okta, Todd McKinnon, told CNBC that while Google is trying to defend their search, keeping its R&D in-house is definitely one of their finest moves.

He went on to say that DeepMind and research at Google are the sources of the transformers that drive generative AI and deep learning models. Transformers are deep learning models that, notably, monitor relationships in sequential data, such as words, to finally grasp their meaning and context.

“Well, Google’s research on transformers—the algorithm that powers all of these LLMs, or big language models—was the breakthrough.

He went so far as to say that if Microsoft proceeds with this plan, it would ultimately become an OpenAI consultancy. Notably, OpenAI-developed technology is included in both Microsoft’s AI PCs and CoPilot, the AI assistant. Microsoft and Sam Altman, the head of OpenAI, inked a multi-year, multi-billion dollar deal.

It’s so strange, he remarked. Consider a career at Microsoft. OpenAI is the one creating all the cool stuff over there. It appears as though Microsoft will become a consultancy firm.

Due to significant errors like requesting customers to apply glue on pizzas and other things, Google has been having trouble getting its AI products, such as AI Overviews and Image Generators, established in the market.

“This isn’t like previous technological generations, like personal computers, where the biggest companies in the world didn’t always have the upper hand because, at their core, personal computers were so disruptive that they were practically toys,” McKinnon said.

“No new AI model is comparable to a toy. The only reason OpenAI can make it function is because of the excellent R&D they required, which required $10 billion from Microsoft to run the model. This wasn’t a disruptive development; rather, it was an investment of $10 billion, he continued.

Microsoft’s strategic partnership with OpenAI, involving significant investments and collaboration, has led to discussions about the potential implications for both companies and their competitors, particularly Google. Some industry observers suggest that Microsoft’s reliance on OpenAI for advanced AI development could inadvertently benefit Google in several ways.

Consolidation of AI Research

By outsourcing a substantial portion of its AI research and development to OpenAI, Microsoft may risk becoming more of a facilitator than a leader in AI innovation. This approach could position Google, which maintains its AI research predominantly in-house, to capitalize on its proprietary advancements. Google’s development of foundational technologies, such as transformer models, underscores its commitment to internal AI progress, potentially giving it a competitive edge.

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Control Over AI Innovations

Google’s strategy of retaining control over its AI research allows for seamless integration of new technologies into its existing products and services. In contrast, Microsoft’s dependence on OpenAI might limit its direct influence over AI innovations, potentially leading to delays or misalignments with its strategic objectives. This dynamic could enable Google to introduce AI-driven features more swiftly and cohesively across its ecosystem.

Market Perception and Trust

Maintaining in-house AI research can enhance a company’s reputation as a technology leader. Google’s extensive history in AI research contributes to its perception as an industry authority, fostering trust among consumers and enterprise clients. Microsoft’s outsourcing strategy might dilute its perceived expertise, potentially influencing customer preferences in favor of competitors like Google.

Regulatory and Ethical Considerations

As AI technologies evolve, regulatory and ethical considerations become increasingly prominent. Google’s direct oversight of its AI research allows for more robust governance and ethical compliance. Microsoft’s partnership with OpenAI necessitates coordinated efforts to address these concerns, which could introduce complexities and potential vulnerabilities.

In summary, while Microsoft’s collaboration with OpenAI accelerates its access to cutting-edge AI technologies, it also presents opportunities for Google to leverage its autonomous research approach. By maintaining control over its AI developments, Google may strengthen its competitive position, capitalize on market opportunities, and reinforce its leadership in the AI sector.

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