On Monday, Microsoft announced a multi-year, multi-billion dollar investment in OpenAI, the maker of the chatGPT and Dolly applications. The two companies already had a partnership, and last week Microsoft CEO Satyan Adela said his company plans to incorporate OpenAI software into a range of its own products, from Microsoft designer to the search engine Bing. This is seen as a potential threat to Google, which has dominated the search market for over a decade.
Will Microsoft and OpenAI’s Collaboration Threaten Google’s Search Dominance?
When people first started testing chatGPT, it was a new thing that was different and cool. It provided a conversational answer to any question, which made it a potential threat to Google. Google has been the go-to tool for searching the internet, but chatGPT made it seem old by comparison. This is seen as an existential threat to Google, as it could potentially revolutionise the way we search the internet.
Microsoft already had partnerships with OpenAI, but this new investment deepens those relationships. The investment solidifies OpenAI’s technology onto Microsoft’s cloud infrastructure, Azure. This is a big deal for Microsoft, as they want Azure to be front and center for AI. Microsoft plans to embed this technology not just in their web search, but across all of their products, from Word to Excel.
Microsoft views the potential of this AI as expansive for everything they have, not just taking some share from Google in search. They see it as a way to revolutionize all of their products and services.
Google, on the other hand, is worried about the explosion of interest in chatGPT and OpenAI. Google has invested a lot of money in AI over the years and has built it into their data centers. They have positioned themselves as an AI-first company, but chatGPT is a new threat to their business. Google has not announced any major transactions or changes in response to this investment, but they are certainly paying close attention.
When people use Google to search, they don’t always put in the same kind of questions that people have been putting into chatGPT. ChatGPT is not an existential threat to what Google does in its business model at the moment.
The existential threat was probably overestimated, especially in the near term. Google makes most of its money through search ads, but not every search, especially not every query put in chatGPT, works that way. Additionally, chatGPT gives a single answer, whereas Google provides multiple options.
The cost of adding these AI tools into existing products is significant. The computing power to run a chatGPT search is much more than a traditional search. This means that there will be an added cost for companies to incorporate this technology into their products.
In conclusion, the use of AI in online search has the potential to revolutionize the way we search the internet. Microsoft’s investment in OpenAI solidifies their relationship and allows them to incorporate the technology into a range of their products. Google is worried about the potential threat to their business, but it is still uncertain how much of a threat chatGPT will be in the near term. The cost of incorporating this technology into existing products is significant and will be an added cost for companies. However, it is clear that AI will play a major role in the future of online search.