Microsoft Corp (MSFT.O) told EU antitrust regulators that Alphabet Inc (GOOGL.O) enjoys a competitive advantage in generative artificial intelligence because of its trove of data and AI-optimised chips, highlighting the rivalry between the two tech giants.
Microsoft’s comments come in response to a consultation launched by the European Commission in January on the level of competition in generative AI.
Generative AI can generate human-like responses based on written prompts. Microsoft-backed ChatGPT and Google's chatbot Gemini are typical representatives of generative AI.
"Today, only one company - Google - has both strength and independence in a vertically integrated manner across every layer of AI, from chips to mobile app stores. All others must rely on partnerships to innovate and compete," Microsoft said in its submission to the committee.
Microsoft said Google's own supply of AI semiconductors will give it a competitive advantage in the coming years, while Google's large amount of proprietary data from its search index and YouTube will enable it to train Gemini, a large language model.
“YouTube offers an unparalleled set of video content; by one estimate, it hosts 14 billion videos. Google has access to this content, but other AI developers don’t.
Microsoft said artificial intelligence voice assistants such as Google's Google Assistant and Apple's (AAPL.O) Siri give both companies an advantage.
“They are well positioned to grow and leverage their respective existing voice assistants to take the lead in generative AI. New entrants and competitors to Google and Apple will not be able to enjoy the same advantages.”
Google hit back at Microsoft.
"We hope the committee's research will shine a light on companies that are bringing the same approach to AI services that Google Cloud offers, or that have long locked in customers," a Google spokesperson said.
Microsoft's investment in OpenAI, which exceeds $10 billion, is currently at the center of a storm with EU antitrust regulators, and Microsoft is trying to allay regulators' concerns about such partnerships between big tech companies and startups.
“All of these start-ups rely on various forms of investment and partnerships to enter and expand in this space,” it said.
The report noted that Anthropic, whose investors include Google and Amazon (AMZN.O), France's Mistral, which has invested 15 billion euros, includes Microsoft, and Canada's Cohere, whose investors include Salesforce and Nvidia (NVDA.O).
Microsoft said: "Encouraging pro-competitive partnerships in the field of AI is an effective way to prevent companies from developing anti-competitive advantages through vertical integration."
The article is forwarded from: Jinshi Data