Microsoft Corp. and Alphabet Inc. have been rivals for decades in search, cloud and other services, but Microsoft wants to take that rivalry to a higher...
Microsoft Corp. and Alphabet Inc. have been rivals for decades in search, cloud and other services, but Microsoft wants to take that rivalry to a higher level of computing.
The main focus of the blog post was Azure, the cloud-computing product that has excited investors with huge growth in years past, but has shown some slowdown in revenue growth in recent months that has dinged Microsoft stock. Azure competes with Amazon.com Inc.’s AMZN Amazon Web Services, which is believed to have the largest market share, along with Alphabet’s GOOGL GOOG Google Cloud.
“While Bing holds a small share of the search-engine market, Microsoft still seeks to gain share vs. Google’s dominant search engine by offering more advanced search capabilities and language models that could take market share away from Google over time,” Wedbush analyst Daniel Ives wrote Monday morning in reaction to the OpenAI news from Microsoft.
So, after nearly a decade with DeepMind, why isn’t Google so far ahead that Microsoft could never hope to catch up by rolling out OpenAI now? Because the company has learned that AI has issues that have not been worked out yet, and which can make the technology inherently dangerous. Microsoft executives may have to learn this lesson for themselves, though they may also find ways to incorporate AI in smaller ways. Google certainly has, as Bernstein analyst Mark Shmulik wrote in a fascinating Jan. 12 research note that broke down the many ways that Google has been able to safely incorporate AI into its search results.
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