Microsoft has made a significant investment in OpenAI’s ChatGPT during the first quarter, sending shockwaves through the chatbot market. In contrast, Google’s parent company Alphabet has not taken any notable actions to address this development.
During their Q1 earnings call, Google revealed their concern regarding ChatGPT’s popularity. In response, Alphabet released their own chatbot, ‘Bade’, however, it has yet to demonstrate any noteworthy success.
The news that Samsung is considering switching from Google to Microsoft’s ‘Bing’ search engine for their Galaxy smartphones has particularly shaken Alphabet. According to the New York Times, this report alone caused a 3.5% drop in Google’s stock price.
During the conference call, Sundar Pichai, CEO of Google, reassured investors that they lead the search market, boasting that Google currently occupies 90% of it. However, he made no mention of the chatbot market.
In contrast, Microsoft declared their strong support for ChatGPT during their earnings call. Amy Hood, Microsoft’s CFO, revealed that they invested several billion dollars in ChatGPT during Q1 and plan to invest even more to meet customer demand. She expressed confidence that the revenue from this investment would increase exponentially over time.
Hood also stated that they will equip Bing with the latest model of ChatGPT, recognizing it as the next breakthrough innovation.
Microsoft’s ChatGPT is quickly dominating the chatbot market while Alphabet’s response has been lackluster. As the competition between the two tech giants continues to intensify, only time will tell who will reign supreme in the world of artificial intelligence.