Microsoft is outsourcing its best AI, tech CEO says — and that's good news for Google

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Todd McKinnon, CEO of security firm Okta, said there’s a risk that Microsoft’s position in AI becomes reduced to that of a consultancy.

Microsoft is effectively outsourcing all of its best artificial intelligence research and development to OpenAI, according to Todd McKinnon, CEO of cybersecurity firm Okta.

He noted that the so-called transformers that power today's generative AI technologies"all came from Google.""This all came from Google, with DeepMind and the research," McKinnon said."I mean, the breakthrough was the research from Google, the transformers which are the algorithm that all these LLMs are using to make these big advancements."McKinnon added that there's a risk Microsoft's position in AI becomes reduced to that of a"consultancy.

Still, Google has a mountain to climb if it's going to achieve commercial success with its own AI investments. Google subsequently pulled its Gemini image generator tool for pictures of people and is yet to reinstate the product while it investigates a fix.McKinnon noted that AI is a rare segment of technology that has stemmed from substantial backing from major tech giants, rather than organic investments into new product cycles, as was the case with the PC and cloud computing.

 

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