What are the concerns Microsoft had about Google’s AI progress in 2019?

Microsoft’s AI Concerns Over Google in 2019

Concerns over Competitiveness

In 2019, Microsoft was growing increasingly concerned about its AI capabilities compared to Google. Microsoft executives were particularly worried about Google’s lead in natural language processing (NLP) models and the potential impact on Microsoft’s products, such as Bing, Office, and Windows.

Email Reveals Concerns

Internal emails, which were released as part of a US antitrust case against Google, shed light on Microsoft’s concerns. In one email, dated June 12th, 2019, Microsoft Chief Technology Officer Kevin Scott wrote to CEO Satya Nadella and co-founder Bill Gates, stating that Microsoft had underestimated Google’s efforts in AI.

Missed Opportunities

Scott admitted that initially, he dismissed Google’s AI efforts as a “game-playing stunt.” However, he realized that Google was investing heavily in infrastructure and tools for training NLP models. As a result, Google was developing models faster and at a larger scale than Microsoft.

Lag in Scaling

According to Scott, Microsoft had “very smart ML people,” but lacked the infrastructure and resources necessary to scale up their AI ambitions. It took Microsoft six months to replicate Google’s BERT language model, which hinted at the significant gap between the two companies.

Competitive Analysis

Scott warned that Google was already seeing the benefits of its AI advancements, particularly in search. He expressed concern that Microsoft was falling behind and that Google’s lead would only grow in the future.

Response to Concerns

In response to the email, Nadella forwarded it to Microsoft CFO Amy Hood, stating that it explained why he wanted to explore investment opportunities in OpenAI. Soon after, Microsoft invested $1 billion in OpenAI, which has since led to significant benefits for Microsoft.

Implications for the AI Industry

The concerns raised by Microsoft in 2019 highlight the importance of ongoing investment and innovation in AI. Companies that fail to stay at the forefront of AI advancements risk falling behind their competitors, particularly in industries where AI plays a critical role.