Google and Microsoft: Rivals for the Future of Search

Nishita Gupta
Nishita Gupta April 26, 2023
Updated 2023/04/26 at 6:32 PM

Google and Microsoft Corp. of Alphabet Inc., whose respective quarterly earnings were boosted by their well-established cloud computing and search businesses, respectively, used their time with investors to emphasize what’s next: artificial intelligence.

The internet behemoths, Google and Microsoft are rivals for the future of search with one, providing radically different appraisals on the level of market disruption in their individual earnings calls on Tuesday. Executives from Google urged investors to put their faith in the company’s lengthy history as the top search engine in the world and presented AI as just another change in its ever-evolving business. Microsoft alleged that considerably more dramatic developments are taking place.

While Alphabet’s shares climbed less than 2% in extended trading, investors appeared to favor Microsoft’s argument more. As a result, their shares increased as high as 9.7%.

Google, which controls the global market for online search, was once thought to be practically unbeatable. With the release of OpenAI’s hugely well-liked chatbot, ChatGPT, that situation changed. The cooperation has increased pressure on Google to reimagine its core search business to enable more of the conversational conversations that generative AI makes feasible. Microsoft has started integrating OpenAI’s technology into its Bing search engine.

Alphabet CEO Sundar Pichai underlined to analysts that Google is spending extensively on AI, but he downplayed the implications of the technology for the search advertising market, which is still the company’s main source of revenue. He expressed confidence that even if users’ searches produce a summary created by a massive language model rather than the well-known list of links that Google has historically provided, they will still appreciate online advertising.

Pichai stated, “Over the years, we have undergone numerous transformations in search. And as search has developed, I believe we have always taken a solid, practical approach to how ads have developed as well.

However, Microsoft CEO Satya Nadella asserted that his business is a formidable rival. Since the February debut of the AI-powered Bing, he said that the number of app installations had quadrupled. Without providing any specific data, he continued by saying that Bing gained market share in the US throughout the quarter.

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