Competition is Alive, Microsoft and Google Wage a Search Engine Battle Over AI

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Search Will Never Be the Same

Wall Street Journal technology writer Joanna Stern says I Tried Microsoft’s New AI-Powered Bing. Search Will Never Be the Same.

Microsoft’s new Bing and Edge became available in a limited preview Tuesday. You have to sign up on bing.com for the preview wait list, and once you are in, you’ll have to use the Edge browser (available for Windows and MacOS). Microsoft plans to bring it to other web browsers over time. 

It’s far too early to call a winner in this AI search race. But after seeing the new Bing in action, I can confidently say this: A big change is coming to how we get information and how we interact with our computers.

That is a free link if you care to read. The video is even more interesting.

Can Bing and OpenAI Challenge Google? Microsoft’s Satya Nadella Weighs In.

Key Quotes

  • “Bing with AI is going to completely change what people can expect from search.”
  • “We are grounded in the fact that Google dominates this space. I feel like a new race is starting with a complete new platform technology. I am excited for the users to have choice finally, and a real competitive race.
  • “All I need is a few more users, and someone else that I’m competing has to keep all of their users and all of their gross margin.” 

Google Follows Microsoft in Unveiling AI Search Features

Just one day later, the WSJ reports Alphabet unit’s artificial-intelligence rivalry with Microsoft heats up. 

Please consider Google Follows Microsoft in Unveiling AI Search Features

Google unveiled new artificial intelligence-powered search and map features, capping a flurry of competing announcements by the search giant and rival Microsoft Corp. as they race to bring a new generation of the technology to users.

The back-to-back announcements from two of the tech industry’s fiercest competitors are the latest signs of how companies are scrambling to roll out tools that use a type of artificial intelligence that can generate content—from haikus to computer code—and capitalize on a wave of renewed excitement about the potential of AI among businesses and consumers.

“Google has a lot more to lose than gain from rushing Gen-AI out the door,” wrote Colin Sebastian, a senior research analyst at Baird Equity Research. “Microsoft is taking a big leap, integrating OpenAI technology with Bing, a smart move for a search engine with limited share—how could Bing not gain search share?”

Others are jumping into the fray as well. China’s Baidu Inc. is developing an AI-powered chatbot similar to ChatGPT called “Ernie bot,” which it plans to launch next month.

The race is forcing Google—by far the most widely used search engine—into an unusual position of playing catch-up to a company whose search engine is an also-ran in traffic terms.

Google Weekly Chart

Google weekly chart courtesy of StockCharts.com

It’s a long way down if Microsoft takes market share from Google. 

More accurately, it’s a long way down regardless. 

Alphabet’s Profit Falls 34% Amid Ads Slowdown

On February 2, the New York Times reported Alphabet’s Profit Falls 34% Amid Ads Slowdown

Alphabet, Google’s parent company, has settled into a period of stalled growth as economic uncertainty reverberates across Silicon Valley. Gone are the pandemic boom times, when the internet giant’s profit and employee head count soared.

On Thursday, the company posted its fourth consecutive decline in profit as it grapples with a slowdown in digital advertising. Net income plummeted 34 percent to $13.6 billion, falling short of Wall Street expectations of $15.3 billion, according to data compiled by FactSet.

Competition is Good

Stock pricing aside, competition is good. There is no reason to bust up either if these corporations. 

The consumer is the winner in these battles.

But the Biden administration and the EU see things differently.

Justice Department Accuses Google of Monopolizing Ad Market

Politico reports the Justice Department finally unveiled its vaunted antitrust lawsuit seeking to break up Google’s advertising business, a case that could reshape Silicon Valley and define President Joe Biden’s legacy.

The EU Will Lag on AI for the Same Reason it Lost on Phones and EVs

On February 4, I commented The EU Will Lag on AI for the Same Reason it Lost on Phones and EVs

Microsoft alone will spend over three times on AI what Germany as a country will spend. Factor in Google, Amazon, and the US defense industry.

The EU now has lawsuits against Google, Amazon, and Microsoft. The US leads because the EU would bust up any company before it got big enough to lead on anything.

And heaven forbid any European company get big enough to achieve anything. The EU would bust them all up in the name of competition.

Unfortunately, the protectionist Biden administration sees things more and more like the EU. 

Regarding the Stock Market 

Facebook chart courtesy of StockCharts.Com, annotations by Mish

On February 3 I cautioned Bull Markets and Bear Market Rallies End on Good News

Back-to-back, we have had good news on Facebook and on jobs. What’s Ahead?

The Fed and Lags

If you have been net long for this rally, congrats! But think about where things are headed as the Fed Commits to More Rate Hikes.

Also consider my January 30 post How Long is the Lag Between Fed Rate Hikes and Real World Activity?

I strongly suspect that any good news is now mostly behind us. 

This post originated on MishTalk.Com.

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abombthecoder
abombthecoder
1 year ago
2 or 3 companies competing is not competitions. it’s collusion. what do capitalits love to point out two or three companies controlling everything is competition. this is insane. is the definition this mean by competition and free market? a few monopolies and the people are perma serfs, i.e. non company owners.
Rbm
Rbm
1 year ago
I tell you having three phone companies has done a lot to lower my phone bill.
Or one cable company to chose from( back in the day)
Big not to all
KidHorn
KidHorn
1 year ago
I would prefer google not filter their results to fit their political agenda before trying to be intelligent. I frequently have to search for technical stuff and Bing always puts Microsoft results first. Most of them are auto-generated help that’s completely useless.
I think this is a passing fad. This will fall into 2 groups. One group will realize AI isn’t actually intelligent and use their own brains. The other will be too dumb to know AI isn’t intelligent and will recite what AI says verbatim thinking others will think they’re smart. Most of the media will fall into the later group.
Rbm
Rbm
1 year ago
Reply to  KidHorn

I think to some degree all the things used to make us safer and smarter make us dummer. Less consequence the less focus. The more your car does for you the less you concentrate on driving. But hey im old. Some things are better i guess. Want to fix your car. Go on youtube. 100s of vids showing you how to. You just have to be smart enough to weigh through the crap.

randocalrissian
randocalrissian
1 year ago
Reply to  Rbm
Pro tip, put a “sic” after dummer if you know what you did there.
Rbm
Rbm
1 year ago
Haha i dont spell so good to begin with. Also Had covid in 2020 and still have some issues.
tractionengine
tractionengine
1 year ago
It’s an interesting dichotomy where competition is good but breaking up companies which have bought out their competitors and thereby reduced competition is not good. I’m glad I don’t have to decide this one!
Casual_Observer2020
Casual_Observer2020
1 year ago
Breaking up oligopolies and monopolies isn’t protectionist. Even the libertarians are lost in this world. I’ve long advocated many ccompanies including big tech need to be broken up to foster more competition. That was the whole point of breaking up companies. The Europeans have this right.
There is a higher chance of AI taking the internet down due to Russian or China cyber war on the world. I predict within a few years we will suffer the same thing that happen in Ukraine during their elections and new year circa 2015. Lights out !
KidHorn
KidHorn
1 year ago
Just to let you know. All the nonsense the left and media spewed about Russian bots, Russian influence, and Russian espionage since they lost the 2016 election was all made up.
Zardoz
Zardoz
1 year ago
Reply to  KidHorn
You just made that up.
KidHorn
KidHorn
1 year ago
Reply to  Zardoz
Completely unaware of the story from the Columbia Journalism Review. Why am I not surprised?
Zardoz
Zardoz
1 year ago
Reply to  KidHorn
Does that article have a link?
randocalrissian
randocalrissian
1 year ago
Reply to  Zardoz
He may be averse to helping his fellow human, but I am not. Here is my best attempt to find said article: link to cjr.org
randocalrissian
randocalrissian
1 year ago
or just browse this list, there is a two part series from 2023 that is probably a more likely target.
Felix_Mish
Felix_Mish
1 year ago
I’ve accidentally tried https://www.perplexity.ai a couple times recently. Looking for broad knowledge about techie things. Gotta say, I found answers easier there than through Google.
Couple times is not an accurate measure, but it did give me the feeling of comparing AltaVista and Google back in the day.
Google is not ignorant of generative AI. Like Microsoft reacted to the Internet opening up to commercial use, they’ll turn on a dime.
Rbm
Rbm
1 year ago
Reply to  Felix_Mish
If your looking for a source for tech news. Check out the this week in tech podcast.
HippyDippy
HippyDippy
1 year ago
Google search is doomed anyway. When they first came out, they gained traction because they didn’t use sponsored ads as they do now. Now, about all you get are the sponsored ads and good luck ever seeing the vast majority of the results. The only real reason it’s alive is because it’s more a government agency than it is a public corporation.
Jack
Jack
1 year ago
Reply to  HippyDippy
I have been using the AI search engine https://andisearch.com for my web searches since someone here spoke about it a few days ago.
Did a couple of searches again (both bing and google gave useless results last week) and it instantly gave me exactly what I needed bang on. No scrolling through pages and pages of garbage.
Am sure the new AI version of bing will be an improvement over the old version.
Jojo
Jojo
1 year ago
Reply to  Jack
That was me.
HippyDippy
HippyDippy
1 year ago
Reply to  Jack
I tried it, and have it on my screen now. However, though the results were fine, it only provided one result. That’s a pretty scary road to travel, especially when you consider the war against free speech. I will use it, but I prefer a lot of choices. Brave search is still my primary choice. Thanks.
Counter
Counter
1 year ago
Because of a monopoly suit against microsoft we have google. Now we have a couple to choose from. Those couple received the bulk of stimulus and Fed favoritism. We have a lack of competition and concentrated wealth in a few
Dr Funkenstein
Dr Funkenstein
1 year ago
Two evil corporations that were happy to help suppress Parler at the urging of AOC.
Zardoz
Zardoz
1 year ago
Reply to  Dr Funkenstein
How is parler suppressed? Getting ignored by the general population because of your kook population is not suppression.
Dr Funkenstein
Dr Funkenstein
1 year ago
Reply to  Zardoz
They were taken offline for several months by left wing tech companies at AOC’s insistence . I could not log on to them with my iPad . So much for “it’s a private company they can do what they want” and the left wing manure about diversity and tolerance. Stop believing the lies the drive by media feeds you.
You would possibly have more competition if Microsoft, Google, Amazon, etc were broken off.
KidHorn
KidHorn
1 year ago
Reply to  Zardoz
They were de-platformed. You live in a bubble and have no idea what’s really going on in the world.
Zardoz
Zardoz
1 year ago
Reply to  KidHorn
I live in this bubble with a bunch of kooks. Parler.com is very much still there.
Maximus_Minimus
Maximus_Minimus
1 year ago
And it was me thinking that the search engine records every search of mine, and dishes out results by my history. And I cannot hide from it because it records my computer details and identifies me by cross browser “cookies”.
Silly me thinking that was AI.

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