Google Could Gain as Microsoft Plans to Outsource AI to OpenAI

Microsoft may hand over its top AI tools to OpenAI, potentially benefiting Google.

  • Microsoft may hand over its top AI tools to OpenAI, potentially benefiting Google.
  • Google’s DeepMind research created the transformers powering current AI models.
  • Microsoft risks becoming a consulting company for OpenAI’s advancements.

Microsoft is rumored to be planning to outsource its best AI tools to OpenAI, a move that could indirectly benefit Google. Todd McKinnon, CEO of Okta, highlighted in an interview with CNBC that Google’s decision to retain its AI research and development in-house has been advantageous, particularly as they developed the transformers that power modern generative AI and deep learning models.

McKinnon noted that if Microsoft proceeds with this outsourcing, it could end up acting more like a consulting firm for OpenAI, given their extensive partnership. While Google has faced challenges with some AI products, its foundational research in AI continues to be pivotal. This situation contrasts with previous technology disruptions, emphasizing the massive investments required to advance current AI models.

Google’s foundational AI research through DeepMind has set a high bar, and as Microsoft leans on OpenAI for AI advancements, Google stands to maintain its competitive edge in the field.

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