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Microsoft says AI alliances are needed to compete with Google

Mar 15, 2024 - theregister.com
Microsoft has defended its partnerships with generative AI developers to the European Commission's competition authorities, stating it had no other option unlike Google, which it claims has the capability to operate independently at every AI layer. The tech giant's response came following the EC's call for contributions on competition in generative AI. Microsoft highlighted its $13 billion investment in OpenAI and €15 million stake in French startup Mistral AI, and pointed to the fierce competition and rapid pace of innovation in the AI sector.

Microsoft's submission also suggested that partnerships and investments in AI should be encouraged as they foster innovation and consumer choice, and prevent any player from becoming 'too big too soon'. The company argued that the current antitrust framework and legislation is sufficient. However, Google reportedly disagreed with Microsoft's assertions, with a spokesperson hoping the Commission's study will highlight companies that lack the openness of Google Cloud or have a history of locking in customers.

Key takeaways:

  • Microsoft has defended its partnerships with generative AI developers to the European Commission, stating that unlike Google, it cannot operate independently in every AI layer.
  • Regulators are scrutinizing Microsoft's $13 billion investment in OpenAI and its €15 million stake in French startup Mistral AI.
  • Microsoft highlighted the intense competition and rapid innovation in the generative AI sector, mentioning companies such as Anthropic, Cohere, Aleph Alpha, and Mistral AI.
  • Google responded to Microsoft's assertions, hoping the Commission's study will highlight companies that lack the openness of Google Cloud or have a history of locking in customers.
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