Google claps back at Microsoft for claiming to EU that YouTube & Search Index gave them advantage in AI race

Just as the European Digital Market Act (DMA) took place earlier this month, Microsoft has now told EU lawmakers that Google will always be one step ahead of them in the AI competition due to its vast resources.

Microsoft pointed out Google’s strong position in AI, saying that its integrated capabilities across different AI levels and its valuable data from Google Search Index and YouTube make them have one leg up. As first reported by Reuters, this insight was shared in response to a consultation initiated by the European Commission regarding competition levels in generative AI.

“They are well-positioned to evolve and leverage their respective existing voice assistants into leadership positions in generative AI. New entrants and competitors of Google and Apple will not enjoy the same advantages,” the company says.

Google fired back at Microsoft’s claim, pointing out Microsoft’s history of “locking in customers.” As you may recall, folks have a problem with the pre-installation of Edge on Windows 11 desktops, a practice that only changed with the Digital Markets Act, making it easier to uninstall.

“We hope the Commission’s study will shine a light on companies that don’t offer the openness of Google Cloud or have a long history of locking-in customers – and who are bringing that same approach to AI services,” Apple’s quote reads.

Speaking of Apple, the Cupertino tech giant is also now reportedly talking with Google to bring Gemini’s AI experiences to future iPhone updates for models with iOS 18 or later.

Microsoft and Google have been in back-and-forth AI war. Both companies have their own products: Microsoft with GPT-4-powered Copilot and Google with Bard (now rebranded as Gemini, which also is the name of its large model).