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Microsoft Concern About Google’s Lead Drove Investment in OpenAI

May 01, 2024 - bloomberg.com
Microsoft Corp. invested heavily in OpenAI due to fears of falling behind Google in AI technology, according to an internal email revealed in the Justice Department's antitrust case against Google. The email, written by Microsoft's CTO Kevin Scott in 2019, expressed concern over the gap in AI model-training capabilities between Microsoft and Alphabet Inc., Google's parent company.

The email exchange, which included CEO Satya Nadella and co-founder Bill Gates, revealed that Microsoft's top executives privately acknowledged their lack of infrastructure and development speed. They felt they were unable to catch up with OpenAI and Google's DeepMind in terms of AI technology advancement.

Key takeaways:

  • Microsoft's heavy investment and partnership with OpenAI was motivated by a perceived lag behind Google, as revealed in an internal email.
  • The email was released as part of the Justice Department’s antitrust case against Google.
  • Microsoft's CTO, Kevin Scott, expressed concern about the gap in AI model-training capability between Alphabet Inc. and Microsoft.
  • Top executives at Microsoft privately admitted they lacked the infrastructure and development speed to compete with OpenAI and Google's DeepMind.
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