Microsoft CEO warns of 'nightmare' AI future if Google's search dominance continues

Oct 11
If Google's dominance in online search persists, Satya Nadella, the CEO of Microsoft, has warned that the Internet might become a nightmare. According to him, this predicament begins with searches on desktop and mobile devices and extends to the rapidly developing field of artificial intelligence.
On the US government's extensive antitrust trial against Google, which is currently on its fourteenth day, Nadella provided testimony. He is the most senior tech executive to have testified thus far in the trial, which examines Google's powers as the worldwide standard search engine on mobile devices and browsers.

In his evidence, Satya Nadella criticized Google as a digital behemoth that prevented users from using competing search engines, expressing his dissatisfaction with the ongoing conflict between Microsoft and Google.

Agreements with businesses like Apple, which made Google the default search engine for millions of Internet users, were essential to Google's approach.

Microsoft is willing to pay Apple $15 billion a year for the opportunity of having Apple replace Google as its preferred search partner, according to Nadella, who said he tried unsuccessfully to persuade Apple to do so every year.

What's even more concerning, according to Nadella, is that the enormous amount of search data provided to Google by default agreements may help Google train its AI models to be superior to those of its competitors, endangering to give Google an insurmountable advantage in generative AI and strengthening its hold on the market.
It will be extremely harder to compete with someone who has this core... edge in the age of artificial intelligence, according to Nadella.

Even though Microsoft's Bing search engine is profitable and has had close to $100 billion invested in it over the past 20 years, it only has a single-digit market share in desktop search and a little higher share in mobile search.

What's even more concerning, according to Nadella, is that the enormous amount of search data provided to Google by default agreements may help Google train its AI models to be superior to those of its competitors, endangering to give Google an insurmountable advantage in generative AI and strengthening its hold on the market.
It will be extremely harder to compete with someone who has this core... edge in the age of artificial intelligence, according to Nadella.

Even though Microsoft's Bing search engine is profitable and has had close to $100 billion invested in it over the past 20 years, it only has a single-digit market share in desktop search and a little higher share in mobile search.

"While Microsoft and Apple have their default settings—for example, making Apple Maps the default maps app on iOS devices—Google goes much further than other tech companies to ensure people use its products by default," Nadella stated.

He brought up Google's licensing restrictions, which include that the Google Play Store must be an installed app to use the Android operating system. This was another legal issue raised by Google. The comparable, in Nadella's opinion, would be if Microsoft threatened to stop supporting Microsoft Office if Bing weren't the default search engine; however, he claimed that such a move would not be in the company's best interests.

While recognizing that Microsoft's antitrust conflicts with the US government in the 1990s prevented Google from achieving a dominating position, Nadella said that things are significantly different for Google now. The largest software business potential in the world is provided by internet searches, particularly on mobile devices.

When websites and publishers optimize for Google's search algorithm rather than Bing's, when advertisers swarm to Google, and when users stick with what's familiar, Google's dominance in search increases.

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