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ChatGPT has got everyone talking about artificial intelligence (AI) lately. Google launching its alternative called Bard last week has further fueled these conversations. Since Microsoft is one of the biggest and early investors in OpenAI, the firm behind ChatGPT, many see it as a race between Microsoft and Google in AI and related technologies in the coming years. Noted VC investor Vinod Khosla, who invested $50 million in Open AI back in 2019, agrees.
Microsoft and Google will compete fiercely in the AI industry
In an interview with CNBC, Khosla said that ChatGPT and Bard will transform search engines into “answer engines”. Microsoft has already announced an integration of OpenAI’s AI tool with its search engine Bing as well as the Edge Browser. Google is also bringing Bard to Search and Chrome. Both companies want to turbocharge their respective products with AI, which Khosla labels as the “most critical technology for the planet in the next 20 years”. He says Microsoft and Google have big opportunities ahead of them.
Google may have hurried to launch Bard following ChatGPT’s overnight success, but the founder of Khosla Ventures noted that the internet giant has been working on new AI advancements for several years now. However, he also pointed out that the industry needed another “center of excellence” when it comes to AI. Khosla saw that potential in OpenAI as early as 2018, and the startup exceeded his expectations with the progress it made over the past three years or so. It is now giving Google tough competition.
That said, Google has a lot of resources, talent, and the required infrastructure, so it will catch up real quick. But the AI market is very large, “larger than most people would project today”. Pretty much every tech facet is open to AI-powered innovations and re-casting. That means there’s enough opportunity for both OpenAI, or perhaps Microsoft, and Google to establish themselves in this emerging market. In the long run, it could be a two-horse race between these tech behemoths.
“One will have nimble OpenAI. The other will have a lot of deep talent,” Khosla said. “I suspect it will dwarf Google’s current market and Microsoft’s current market 20 years from now. There is no question we are seeing the Cambrian Explosion of opportunity here.”
There will be more participants in this race
Microsoft-backed OpenAI and Google aren’t the only companies in the AI race, though. Many other tech firms are working on similar products of their own. China’s Baidu and Alibaba are to name a couple. We should see more companies enter the conversation AI industry in the coming months. Fascinating times are ahead as the world seems to be on the cusp of a massive technological transformation.
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