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The top AI outsourcing by Microsoft may lead to Google emerging as the victor, according to the CEO of Okta.


The premier AI subcontracting by Microsoft might result in Google emerging as the champion, as per the Chief Executive Officer of Okta.

According to the CEO of Okta, Todd McKinnon, Microsoft is transferring the development of its top artificial intelligence tools and software to OpenAI, which could potentially benefit Google. McKinnon mentioned that Google seems to be safeguarding its position in search without having to outsource its research and development efforts.

McKinnon highlighted that the innovative algorithms powering today’s generative AI technologies all originated from Google. He emphasized that the so-called transformers crucial for advancements in large language models were a result of Google’s research and breakthroughs from entities like DeepMind.

The role of Microsoft as an AI ‘consultancy’

McKinnon expressed concern that Microsoft’s role in the AI sector could diminish to that of a mere consultancy. Microsoft’s leading products, like Copilot and generative AI software on PCs, incorporate technology developed by OpenAI, the organization behind the AI chatbot ChatGPT.

Microsoft’s substantial investments in OpenAI, totaling around $13 billion, have positioned it as a leader in advancing foundation AI models. This has raised implications for Google, which might face challenges in its search dominance as users increasingly rely on AI chatbots like ChatGPT.

According to McKinnon, Google faces an uphill battle in achieving commercial success through its AI ventures, having encountered several setbacks and public missteps in its AI initiatives.

Significant investments imperative for success

McKinnon highlighted that AI stands out as a technology segment heavily influenced by sizable investments from major tech corporations, contrasting with the organic growth seen in industries like personal computers and cloud computing.

He underlined the concerns regarding massive investments by Big Tech in AI and the potential risks these investments pose in terms of competition and technological progress in cybersecurity.

McKinnon expressed apprehension towards AI issues like disinformation stemming from digital giants, cautioning that excessive regulations could consolidate power within a select few dominant companies in the AI domain.

For more information, you can read the full article here.

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