Here’s how Google could gain from Microsoft’s rumored decision to outsource its top AI to OpenAI. According to a statement by a tech CEO, Microsoft is planning to transfer its leading artificial intelligence tools and software to OpenAI, potentially benefiting Google indirectly. Todd McKinnon, CEO of identity security firm Okta, highlighted in an interview with CNBC that Google’s strategy to maintain control over its search capabilities, rather than outsourcing its research and development, appears to be a wise decision.
McKinnon further explained that the foundational transformers powering generative AI and deep learning models originated from Google, including developments from DeepMind. Transformers are crucial algorithms enabling large language models (LLMs) to achieve significant advancements by interpreting relationships in sequential data, such as words.
He underscored that if Microsoft proceeds with outsourcing to OpenAI, it could effectively position itself as a consultant to OpenAI. Notably, Microsoft’s AI technologies like CoPilot and AI-powered PCs incorporate technologies developed by OpenAI, following a substantial multi-billion dollar partnership led by Sam Altman at OpenAI.
McKinnon commented on the situation, expressing a view that Microsoft might transition into a consulting role while OpenAI undertakes innovative developments. He remarked, “It’s almost surreal. Imagine being at Microsoft where OpenAI is driving all the exciting initiatives. Microsoft might evolve into a consulting entity.”
Regarding recent challenges faced by Google in establishing its AI products such as AI Overviews and Image Generator in the market, McKinnon suggested these struggles might stem from significant missteps, such as suggesting unconventional uses like glue on pizza. He contrasted this with earlier technology generations like personal computers, where disruption was driven by smaller companies rather than industry giants.
Reflecting on OpenAI’s capability to operationalize new AI models, McKinnon attributed their success to the substantial R&D investments, citing Microsoft’s $10 billion contribution as pivotal in supporting these endeavors rather than being a disruptive force.
