In the ever-evolving world of technology, the giants are always on their toes, looking for the next big thing. Google, the undisputed king of web searches, finds itself in a position of panic over the emergence of OpenAI’s ChatGPT. This artificial intelligence system, capable of providing conversational responses in a human-like manner, has taken the world by storm, reaching 100 million users in just two months.
Microsoft, recognizing the potential of ChatGPT, has integrated it into their search engine, Bing. This move has triggered a Code Red situation at Google, as they fear the disruption this AI could cause to their core business model. With 60% of their revenue coming from search, Google is facing a potential existential threat.
ChatGPT’s ability to provide specific answers without the need to sift through search results could revolutionize the way we interact with search engines. While this may benefit users, it spells trouble for Google’s ad-reliant business model.
As the AI wars begin, Google finds itself in a fierce battle to maintain its dominance in the search engine market. Only time will tell how this conflict will unfold and reshape the tech industry as we know it.
Watch the video by ColdFusion
Video Transcript
Hi welcome to another episode of Cold Fusion this was Google in 1998 so we’re right between that house and this house renting this half of the house ping pong table here going to the Legislative Office there’s Larry CEO of Google say something hi it was a small company run out of the
Garage of Susan wojcicki who is interestingly the current CEO of YouTube simply from recognizing the value of organizing information on the web Google managed to grow from a few tinkering PhD students to a formidable giant that now owns over 90 percent of search and carries out over 8 billion search queries per day
For two decades now Google has been the Undisputed king of web searches the term Google has been synonymous with searching for information need a recipe or remove your review or just settling an argument with a friend you can just Google it with a net worth of 1.15 trillion
Dollars in 2022 they seem Unstoppable so what exactly could make a massive company like Google Panic so much so that they issued an internal Code Red well it’s open ai’s chat GPT of course with Microsoft’s plans to integrate the AI system into their search engine Bing Google search May face a serious threat
For the first time in its history could this be one of the biggest technology story arcs in history while making this episode I kind of felt like we’re at the beginning of an AI War so in the following we’ll learn what Google might do about the situation they’re actually already fighting back
We’ll get into that and we’ll also see why exactly chat GPT is such a threat to Google’s Central business model let’s take a look Fusion TV When to transform just about every industry including education chat GPT pass the US medical licensing exam the bar exam and got a B on a Wharton MBA paper a conversational chatbot capable of responding to any query in a human-like manner always seem to be a technology of
The future for the masses anyway until chat GPT following its release chat GPT has garnered huge attention from around the world to give you an idea of the scale of this moment chat GPT has been the fastest app in history to reach 100 million users it’s taken just two months whereas
Tiktok took nine and Instagram 30. a rapid adoption rate is a classic early signal of a disruptive product or technology a couple of months ago we took a deep dive into chat GPT since then it’s been updated and is better than ever however as I previously stated it’s
Important to know that it’s not perfect and may sometimes give bias or outright incorrect information if you want to see that episode on chat GPT and open ai’s views on the future of these systems in more detail the link for that episode can be found in the description below Microsoft is looking to capitalize namely by putting this technology in their search engine Bing the massive implications of this will be discussed later in the episode but for now we’ve got to find out something how did Microsoft and openai get involved with each other in the first place
The alliance between the two started in 2019 when Microsoft invested one billion dollars into openai this was very crucial for both companies open AI needed some cash as well as the computing power of Microsoft’s Azure cloud services this allowed the AI research firm to scale and drastically reduce its operating costs Microsoft on
The other hand was able to acquire open ai’s intellectual property portfolio in the process in essence Microsoft now has access to some of the world’s best AI technology giving it a Competitive Edge over other major players in the tech industry since then Microsoft and openai have been working together on various projects and
Specifically chat GPT CEO saty Nadella saying its impact will be quote at the magnitude of the personal computer the internet mobile devices and the cloud When Microsoft made the bombshell announcement that they were integrating chat GPT into Bing Google was in shock an emergency code red situation was declared and I could imagine the Frantic meetings one Google executive told the New York Times it was a make or break moment for the company
But wait this is Google we’re talking about the company with Far and Away the world’s leading search engine they dominate 90 of search queries Microsoft with their dinky little Bing accounts for only nine percent of worldwide desktop searches in 2022 so why is Google panicking Google is
Looking at what might happen in the future and not what’s happening today chat Bots are not new but the level of performance seen by chat GPT definitely is the thing that sets it apart from the Medicore chat bots of the past is that it’s a generative pre-trained
Transformer or GPT in plain language it just means that it’s been trained on billions of parameters and petabytes of text this training allows the system to generate new text in a way that mimics the understanding of a wide range of queries and can respond accordingly chat GPT or the inevitable flood of AI
Assistance has the potential to revolutionize how we interact with search engines Microsoft could see this as well and that’s why they’ve been betting on open Ai and its technology for a second I just want you to stop and think about it if an ai-powered search engine gave you the specific information
Or answer you want in a concise manner but you could also ask further questions and drill down into the details that you want this would be revolutionary you don’t have to click through a bunch of links and waste your time right now if you want a specific answer you have to
Google what you’re looking for get a bunch of results that may or may not fit and if it’s specific enough you end up going to a forum anyway and searching through all the answers there in this ai-powered search engine world the answer would already be synthesized for
You and this is because the AI has already crawled through the whole web and read it already and I think this is where ai-powered search will excel the most for very specific problems just this implication alone is huge obviously if you want to know something political
Or something that could have a slant or bias that’s another story uh it has Google shook a little bit uh calling a code red and there’s a good reason for that chat GPT is potentially an existential threat to Google’s business because Google relies 60 of its
Revenue on search and chat GPT offers an alternative to search which is a One-Stop question answering shop powered by AI but this could change the game of search entirely which is core to Google’s business if open AI integrates a chat gpt-like language model into Bing search engine
People will just be able to find the results that they need without having to scroll through a flat page of search results that are littered with ads this may be good news for users but for a company like Google it’s very bad news and why is this so bad for Google
Because roughly 60 percent of their revenue comes from Google Search if the magnitude of this income becomes significantly damaged it could be catastrophic Google’s business model is centered around advertising it’s been their long-standing primary source of Revenue by charging companies for promoted search links or AdSense links on
Websites the company has built a lucrative business model but it’s clear that chat gpt’s integration with Bing has the potential to disrupt this entire system if that doesn’t sound bad enough the creator of Gmail himself said that chat GPT will destroy Google’s business in two years
While I don’t think this is the case because Google isn’t going to just sit still as you’ll soon see it still is interesting that he said this in January of 2023 the Department of Justice filed an Anti-Trust lawsuit against Google they stated quote Google has used anti-competitive exclusionary and
Unlawful means to eliminate or severely diminish any threats to its dominance over digital advertising Technologies this isn’t to mention the 12 000 Google employees that were recently let go this is probably due to higher interest rates and a changing Market but still all things considered these are some of the
Biggest challenges Google has seen in its 20 years of dominance so it’s no surprise that the company issued the code red but here’s the crazy thing they even sought help from their co-founders Larry Page and Sergey Brin both of which had stepped down from their executive
Positions back in 2019 and have not been actively involved in the company’s operations according to the New York Times the pair was invited to an executive meeting to strategize on how to integrate chatbot features into Google search engine they were also said to be devising a plan for the company’s AI operations
According to Forbes Sergey Brin has requested access into Google’s internal code and he was taking a look at some Lambda code this could indicate that Google will be using Lambda in their response to open AI when Google calls them the Old Guard you know things are getting serious
Meanwhile Microsoft is going all out they’re going to be investing an extra 10 billion dollars into open AI as part of the new agreement Microsoft will receive 75 percent of open AI profits until it recoups its investment and then will hold a 49 stake in the company afterwards unfortunately this is
The antithesis of what the open AI company originally stood for if all goes well this may turn out to be one of the best business deals of the decade right now Chrome is the default option for Android and Google pays Apple huge sums of money just to be the default
Option on iPhones and Mac OS devices this has no doubt worked wonders for Google in the past especially since there’s been no real alternative but now that Ben could eat some market share I think Google will use their default status and dominating market share to their advantage while they hit back
This is how I think things may play out if Google gets their act together so Google are probably going to rapidly prototype and release an ai-powered search engine competitor integrated into Google Chrome and because Google Chrome is the default browser for so many this new tool will gain widespread adoption
Without much effort and end up killing being AI before it really gets a chance to start now I could be wrong but it just seems like Google has to make a major move like this it’s reported that Google is working on 20 AI projects including image generation tools a product for Prototype
App testing and even a green screen mode for YouTube creatives one of the most interesting pieces of research is music LM an AI that can transform whistled or humming Melodies into a certain style which is described in text so it’s clear that Google isn’t sleeping in a staff memo CEO Sundar pachai wrote
Quote I am confident about the huge opportunity in front of us thanks to the strength of our mission the value of our products and services and our early investments in AI to fully capture it we’ll have to make some tough choices and I think that last sentence is key it
Seems like Google may be forced to put the safety issues on the back seat and will just start unleashing the AI products they could turn the playing field around quite quickly and this is some news just in according to CNBC Google is currently testing a chat GPT competitor called Apprentice
Bard internally with its employees and also a group of Engineers have left open Ai and started their own AI company and the first product Claude is similar to chat GPT but better in some cases the company called anthropic AI has already raised over one billion dollars and guess what Google just invested 300
Million things are really heating up now but for those of you who are really into technology something doesn’t add up here Google has been working on AI technology for a long time even as far back as 2016 Google CEO Sundar pachai wanted to make Google quote an AI first company so how
Could they be caught with their pants down like this well in a Twist of irony Google inadvertently gave open AI the keys to the castle In 2017 Google researchers published a paper that would silently change the world it outlined a method of processing text images and more it was called a Transformer and their technique allowed an AI to focus on specific parts of an input rather than having to process the entire sequence this allows for more
Effective and efficient processing of language data so in a way it was this groundbreaking work from Google scientists that later led to the development of open ai’s chat GPT problem for Google is that they moved too slowly and this was due to safety concerns and rightly so
Such a large company has a lofty reputation an offensive or misleading AI would be of high reputational risk for Google in general even though AI language models feel very human-like they occasionally produce a logical or outright false information and due to these reasons Google has released nothing publicly but the unavoidable
Consequence was frustrated researchers so some of them have left to raise money for their own AI startups that being said Google does have several language models for internal use the most famous of which was Lambda this language model made headlines in June of 2022 when a former Google engineer
Claimed it was sentient while that may not be true it was certainly sophisticated So let’s wrap this episode up by taking a look at what we know so far about an ai-powered Microsoft search engine Microsoft is expected to launch Bing with some chat GPT features at the end of March there is still some growing speculation about how the AI system will be
Integrated into the search engine one possibility is that chat GPT could allow users to just communicate with Bing in a more human-like way you don’t have to worry about keywords you just ask Bing the question in the same way that you would ask another person an anonymous Microsoft source told
Bloomberg that more conversational and contextual responses to queries will win over users by providing better quality answers that go beyond links Bing is about to get the features of Dali 2. that text to image generator that caused such a stir and kicked off this latest wave of AI art
This integration will allow users to type in text and generate images this feature will be particularly beneficial for searches where images don’t currently exist essentially it will allow users to create new images on demand Microsoft has said that they’re working closely with open AI so this feature doesn’t generate explicit or inappropriate visuals
So it looks like Bing is getting a major overhaul with chat GPT and Dali 2 features integrated it sure is going to grab everyone’s attention when it’s launched how exactly this pans out Still Remains to be seen but I certainly am intrigued and will be interesting to see how this plays out
So we may be on the cusp of a new era in which the search engine that we know becomes a thing of the past the digital directories of old will become the digital assistants of the future so I’m going to make it clear Google Search isn’t going anywhere anytime soon but
It’s so interesting to think that there could be a legitimate Contender around the corner and from Microsoft Bing of all places just think a year or two ago no one would have seen this coming it’s just amazing how fast things are moving so what are your thoughts a link based
Search result is going to expire do you think you’re going to warm up to an AI bot serving you the information that you need well Bing become a verb and finally do you think Google will hit back faster than we all expect please let me know in the comments
Section it’s going to be an interesting discussion alright so that’s about it from me feel free to have a browse through the cold fusion Channel there’s plenty of interesting topics on AI technology business and much more and also don’t forget to check out the chat GPT video linked below so thanks
For watching my name is the gogo and you’ve been watching cold fusion and I’ll catch you again soon for the next episode I’m going to play you out with a new track I made over on the second Channel cheers guys have a good one It’s me thinking
Video “Google Panics Over ChatGPT [The AI Wars Have Begun]” was uploaded on 02/06/2023 to Youtube Channel ColdFusion