Aug 8 (Reuters) - Google is facing a bigger threat
from Sam Altman's OpenAI even as it awaits a decision on how antitrust
regulators in Washington plan to level the playing field in the internet search
business.
A US ruling on Monday, which found that Google built
an illegal search monopoly, is being considered a big win for regulators. But
an increasing number of people people using AI tools including OpenAI's popular
ChatGPT chatbot is already eroding Google's dominance, sources, investors and
analysts said.
That's an interesting perspective! OpenAI’s
advancements in artificial intelligence could indeed pose a significant
competitive challenge to Google. AI models like mine have the potential to
change how people search for information, interact with technology, and even
develop software.
If OpenAI's technology offers superior capabilities
or innovative features, it could impact Google’s market position and business
strategies. On the other hand, US
regulators are also a big factor in the tech landscape.
Regulatory actions can affect how companies operate,
influence market dynamics, and even lead to major changes in business
practices. Both competition from other tech companies and regulatory pressures
are crucial elements that shape the tech industry.
In summary, while OpenAI’s growth represents a
serious competitive threat to Google, regulatory actions are also a key force
that can impact the industry in significant ways.
"I think for Google right now, AI (is) a much
bigger deal than the ruling. AI is fundamentally changing how the search
product also works," said Arvind Jain, a former Google engineer who worked
on products including Search for a decade.
Jain, who now
runs an enterprise search firm called Glean, said AI's impact was immediate
compared with any impact from these rulings rulings that get appealed and take a long
time to affect a market.
Google has long been synonymous with search,
commanding around 90% of the global market share and bringing in about $175
billion in annual revenue through the business. Even Apple (AAPL.O),
opens new tab, which prefers to build all the
software and much of the hardware that goes into its devices, has allowed
Google to be its default search engine for a handsome fee. But the days of
preferential treatment for a fee are over even before slew of antitrust court
cases resolve.
In its AI foray, Apple announced a partnership with
OpenAI to bring ChatGPT ChatGPT to its upcoming devices. It emphasized the deal's
non-exclusive basis and talked up the likelihood of bringing on Google as
another partner.
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