Microsoft CEO Characterizes Google’s Dominance in Search as Its Advantage in Area of AI

Microsoft CEO Satya Nadella said that Google is likely to strengthen its dominance in the Internet search space as a result of using a new generation of tools based on artificial intelligence.

Microsoft CEO Characterizes Google's Dominance in Search as Its Advantage in Area of AI

Last Monday, October 2, Mr. Nadella, speaking during the antitrust proceedings against the aforementioned Internet search giant, shared his reasoning about the fact that Google can use the huge profits generated from advertising to pay publishers for exclusive rights to content that can be used to improve an AI-based search engine and increasing the level of its competitiveness.

In this case, the head of Microsoft contradicts himself to some extent. In February of this year, the brand announced the creation of a version of its Bing search engine based on artificial intelligence, which surpasses Google’s similar digital product. Then Satya Nadella characterized generative AI as a way for his corporation to return to the Internet search market and put the company from Mountain View, California, in an awkward position. However, the October statement by the head of Microsoft indicates that more than six months after the announcement of the new version of Bing, Google continues to maintain its dominant position and has opportunities to strengthen it.

The media note that the position of Satya Nadella indicated on Monday confirms the opinion of the United States Department of Justice that Google is not only the main one in the industry today but will continue to be tomorrow if the company’s actions are not limited.

The CEO of Microsoft assessed the dominance of the main competitor as a kind of element of everyday life, which has become a kind of part of the traditional circle of mode of being. He described the search query in the corresponding Google system as the natural course of an ordinary day, comparing it to brushing teeth.

The company from Mountain View did not comment on suggestions that it has intentions to sign exclusive content agreements in order to enhance the functions of machine intelligence.

The Ministry of Justice accuses Google of the illegal practice of maintaining a monopoly. The agency claims that the tech giant pays $10 billion a year to competitors, smartphone manufacturers, and wireless carriers so that its search engine is the default option in devices and web browsers. Google refutes these accusations.

The Justice Department plans to use the testimony of Mr. Nadella and other Microsoft executives to show how the company, which has a global business and significant resources, failed to weaken the position of the brand from Mountain View in the Internet search market. Also, hearings with the participation of the founders of small search engines are scheduled for this week.

Satya Nadella on Monday announced that Microsoft has invested $100 million in Bing. These financial investments did not allow the corporation to gain its share in the online advertising market, pushing aside its main competitor.

Google’s legal team is trying to prove that Bing’s lack of success is the result of it being a low-quality product. They also pay attention to the fact that Microsoft has invested less in the development of the mentioned product.

Answering a question from a Google lawyer, Satya Nadella agreed that in 2007, the corporation he headed had half as many search engineers as its competitor, and there were three to five years left before the release of a viable system.

Microsoft also failed to gain significant market share in mobile search, despite agreements with Verizon Communications, BlackBerry Research In Motion manufacturer, and Nokia Oyj. These conventions were aimed at making Bing the default search engine.

Last week, Microsoft’s executive director of business development, Jonathan Tinter, said that the corporation had failed to conclude a deal to place its search app in Apple products. He noted that the brand was ready to offer better terms than Google and lose several billion dollars.

During his testimony, Satya Nadella said that Apple used Microsoft to raise the price it receives from Google.

As we have reported earlier, Microsoft Reportedly Discusses Selling Its Bing Search Engine to Apple.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.