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Synopsis : Google may benefit from Microsoft's rumored decision to outsource its top AI tools to OpenAI. Todd McKinnon, CEO of Okta, emphasized that Google's research, particularly in transformers, has been foundational for AI advancements. If Microsoft outsources its AI technology, it could shift towards a consultancy role for OpenAI, highlighting a strategic difference from Google, which has faced challenges but remains focused on in-house R&D. This shift underscores the significant investment and research required to lead in AI innovation.
In a recent development, Microsoft is rumored to be outsourcing its top artificial intelligence (AI) tools and software to OpenAI, a move that could indirectly benefit Google. Todd McKinnon, CEO of identity security firm Okta, discussed this strategic shift in an interview with CNBC, highlighting the pivotal role of Google's research in the advancement of AI.
McKinnon pointed out that the transformers, which are the backbone of generative AI and deep learning models, originated from Google's DeepMind and its research efforts. Transformers are deep-learning models that learn context and meaning by tracking relationships in sequential data, such as words. "The breakthrough was the research from Google, the transformers which are the algorithm that all these LLMs [large language models] are using to make these big advancements," McKinnon explained.
He further commented that if Microsoft proceeds with outsourcing its AI technology to OpenAI, it could result in Microsoft functioning more like a consultancy for OpenAI. Microsoft's AI initiatives, including its AI assistant CoPilot and AI-powered PCs, heavily rely on technology developed by OpenAI. This relationship was solidified through a multi-year, multi-billion dollar partnership between Microsoft and OpenAI, led by Sam Altman.
McKinnon expressed surprise at this strategy, noting, "It’s so bizarre. Imagine working at Microsoft. OpenAI is over there making all the exciting stuff. It’s almost like Microsoft is going to turn into a consulting company."
Meanwhile, Google has faced challenges in establishing its AI products in the market, such as AI Overviews and Image Generator, due to some notable blunders. Despite these setbacks, Google's decision to retain its R&D in-house could be a strategic advantage as it seeks to defend its search business and strengthen its AI capabilities.
McKinnon also contrasted the current AI landscape with previous technological advancements like personal computers. He noted that the disruptive nature of personal computers allowed smaller companies to thrive, whereas the current AI advancements require substantial investment and R&D, as evidenced by the $10 billion investment from Microsoft to support OpenAI's model development.
