Microsoft’s FOMO on Google AI drove funding of OpenAI
Microsoft’s deep concerns about the advancement of Google and OpenAI in the world of artificial intelligence (AI) have come to light in recent document releases related to the ongoing Google antitrust trial.
The documents revealed a 2019 email from Microsoft’s Chief Technology Officer, Kevin Scott, expressing worries about a perceived gap in capability between Microsoft and its competitors, particularly Google and OpenAI. The email, titled THoughts on OpenAI, shed light on Microsoft’s recognition of the need to catch up in the AI race.
At the time, AI was not at the forefront of Microsoft’s discussions, but the tech giant was closely monitoring the progress of rivals like Google and OpenAI. Scott admitted in the email that he had initially underestimated the efforts of OpenAI and Google, particularly in the realm of Natural Language Processing (NLP).
As Scott delved deeper into the capabilities of Google and OpenAI, he realized that Microsoft was lagging behind in terms of model training and scalability. He acknowledged that while Microsoft had brilliant machine learning (ML) experts, there were gaps that needed to be addressed to compete effectively.
In response to these concerns, Microsoft invested heavily in OpenAI, pumping a billion dollars into the company in 2019, licensing its technology, and continuing to invest in subsequent years. This move allowed AI services to permeate throughout Microsoft’s technology stack, albeit not without drawing some controversies, such as copyright lawsuits related to training data sources.
The released documents provide a glimpse into Microsoft’s internal struggles as it grappled with the realization of falling behind in AI innovation compared to rivals like Google. These insights have come to light in the context of the US government’s antitrust trial against Google, where Microsoft CEO Satya Nadella testified in 2023.
Judge Amit Mehta’s decision to release redacted versions of the documents has offered a rare peek into the competitive landscape of the tech industry, highlighting the intense rivalry between key players like Google and Microsoft in the AI space.
The revelations from the documents underscore the high stakes involved in the race for AI supremacy, with tech giants like Microsoft feeling the pressure to keep pace with their competitors. As the industry continues to evolve rapidly, it remains to be seen how Microsoft will navigate the complex terrain of AI innovation and competition in the years to come.
