Here's how Google might benefit as Microsoft rumoured to outsource its best AI to OpenAI

A tech CEO has said that Microsoft is planning to hand over its best artificial intelligence tools and software to OpenAI which could indirectly benefit Google. In an interview with CNBC, Todd McKinnon, CEO of identity security firm Okta stated that Google is looking to defend its search, not outsourcing its R&D is probably one of their best decisions.

He further stated that the transformers that power generative AI or deep learning model “all came from Google, with DeepMind and the research”. Notably, transformers are deep-learning models that learn context and eventually their meaning by tracking relationships in sequential data, like words.

“I mean, 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.”

He even emphasised that if Microsoft plans to do this, it will end up being a consultancy for OpenAI. Notably, Microsoft’s AI assistant CoPilot and its AI PCs all come with tech developed by OpenAI. Microsoft had signed a multi-year, multi-billion dollar partnership with Sam Altman headed OpenAI.

He said, “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.”

Lately, Google has been struggling to establish its AI products like AI Overviews, Image generator and more in the market due to major blunders like asking users to use glue in a pizza and more.

“It’s different than other generations of technology like with personal computers, where it was not necessarily the biggest companies in the world that had the advantage because the whole thing about personal computers is they were truly disruptive in the sense that they were almost toys”, stated McKinnon.

“There’s no new AI model that’s like a toy. The only reason OpenAI can get it working is that the great R&D that they needed — $10 billion from Microsoft, to run the model — that wasn’t like a disruptive thing, that was a $10 billion investment,” he added.