⚡The ChatGPT Acquisition: Can Microsoft Kill Google?
⚡The ChatGPT Acquisition: Can Microsoft Kill Google?
Microsoft is planning a $10Bn investment in OpenAI (ChatGPT)! Should Google be scared?
With 84.08% market share, Google is the gunda of the search-engine world.
Microsoft's Bing on the other hand has a small 8.95% global market share.
But every gunda has to face a bigger gunda (or hero) someday.
And ChatGPT is the new gunda in town.
So, Microsoft is betting big on this new gunda. How? ReadOn!
💵 Microsoft’s Big Bet on OpenAI
Microsoft is planning on investing $10bn in OpenAI, the startup that created ChatGPT.
According to reports, Microsoft will get 75% of OpenAI’s profits till it recoups its investment. And after that it will hold a 49% stake in the company. Other investors will also hold 49%, with 2% remaining with OpenAI’s non-profit parent.
And this investment could be the key to making Bing a better search engine than Google.
But why is Bing lagging so behind Google in this space?
There are two reasons for this:
Google had an early start. It launched in 1998, whereas Microsoft launched Bing in 2009. This early start gave Google more data, more mind share and more time to train its algo. It was always one step ahead of Bing.
Also, Google was more focused on its search engine efforts, while Microsoft was doing several things at once.
Now, OpenAI’s AI-based tools could put Bing on an equal footing with Google.
Microsoft has already announced that it will add OpenAI’s image generator tool Dall-E to Bing.
And with new investment it could also add ChatGPT to Bing and other MS Office tools like Excel.
ChatGPT could help provide faster answers to search queries. And since ChatGPT can also change tones and converse with you, it could provide easier to understand answers than Google search.
So, Google’s dominance could be threatened.
👀 Google Doesn’t Need ChatGPT
Wait, can’t Google outbid Microsoft?
Nope. There are two reasons for this:
Microsoft has already invested $1bn in OpenAI and is allowing the startup to use its Cloud infrastructure.
Google is developing its own AI-based tools, so it won't spend money on other features.
In fact, Google already has a ChatGPT-like chatbot called: LaMDA.
While LaMDA is trained on dialogues, ChatGPT is trained on text. This makes LaMDA more conversational.
Google is hesitant to integrate it with its search engine because AI makes mistakes, something that Google cannot afford.
So, adding ChatGPT (which also makes mistakes) to Bing and MS Office Suite could be reputation damaging.
But this could also be one of the only ways to keep ChatGPT free.
Running ChatGPT costs $100,000/day!
So, the tool can’t be free forever.
Microsoft could make it more accessible but will that do it any good?
Guess we’ll have to wait and watch if the deal goes through.
However, this made us wonder if Google’s search dominance can be broken, is there REALLY any moat in building internet businesses?!!
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