Microsoft made a swift decision to invest in OpenAI following concerns raised by a company official regarding Google’s advancements in the field of AI technology. The decision was prompted by an email sent by Microsoft’s chief technology office, Kevin Scott, to CEO Satya Nadella in June 2019, expressing worries about Google’s progress with Deep Mind and Google Brain.
The email highlighted that Google’s ambitious projects were setting them significantly ahead in various aspects of AI development, including datacenter design, compute silicon, networks, and more. Scott pointed out the challenges Microsoft faced in replicating Google’s NLP models, leading to a realization of the technology gap between the two companies.
Despite efforts to keep the email confidential, it was revealed during the US Justice Department’s anti-trust trial against Google. The email shed light on Microsoft’s struggles to keep up with Google’s AI innovations, particularly in the search market.
After Nadella forwarded Scott’s email to Microsoft’s CFO, Amy Hood, recommending action, Microsoft proceeded to invest $1 billion in OpenAI, followed by additional funding. The European Union initially raised concerns about Microsoft’s influence over OpenAI, but later dismissed the idea, emphasizing the partnership’s goal of accelerating AI breakthroughs for widespread benefits.
Nadella acknowledged the importance of collaborating with companies like OpenAI to enhance Microsoft’s search capabilities and other services. While admitting to overhyping AI-powered Bing’s potential impact on the search market, he recognized the limitations of AI in reshaping the search industry as it stands.
The US Justice Department argued that Google’s dominance in the search market hindered OpenAI’s innovation efforts, delaying the release of technologies like ChatGPT. Closing arguments in the trial are scheduled to begin on 3 May, addressing the implications of Google’s alleged search market monopoly on AI development and competition within the industry.
