Chrome in the Crosshairs: A Glimpse into the Generative AI Race
Amidst the ongoing antitrust trial against Google in Washington, a significant revelation emerged regarding the burgeoning generative AI landscape. Nick Turley, Head of Product for OpenAI’s ChatGPT, testified on Tuesday that OpenAI would be interested in acquiring Google’s widely used Chrome web browser if antitrust enforcers successfully compel Google’s parent company, Alphabet, to divest it. This statement came during a trial where the U.S. Department of Justice (DOJ) is seeking substantial measures to restore competition within the online search market.
Google’s Chrome Monopoly Under Scrutiny
Last year, the presiding judge had already concluded that Google holds a monopoly in online search and its associated advertising. While Google has not offered Chrome for sale and intends to appeal the monopoly ruling, Turley’s testimony offers a glimpse into the intense competition within the generative AI sector, where major tech players and startups are fiercely competing for user acquisition and application development.
AI Ambitions and Antitrust Concerns
During the trial’s opening statements on Monday, prosecutors voiced concerns that Google’s dominant position in search could provide it with unfair advantages in the rapidly evolving field of AI. They argued that Google’s AI products could serve as another avenue to steer users towards its established search engine. In response, Google has emphasized the existing competition from other companies offering generative AI products, including Meta Platforms and Microsoft.
OpenAI’s Perspective on Competition and Partnerships
Interestingly, an internal OpenAI document from the previous year, presented by Google’s lawyer, indicated that ChatGPT considered itself a leader in the consumer chatbot market and did not view Google as its primary competitor. Turley clarified that this document was primarily intended to motivate OpenAI’s employees, and he affirmed that the company would still benefit from strategic distribution partnerships.
Rejected Partnership and Reliance on Bing
Testifying as a witness for the government, Turley revealed that Google had previously rejected a proposal from OpenAI to integrate Google’s search technology within ChatGPT. OpenAI had approached Google after encountering difficulties with its existing search provider (which Turley did not name). Currently, ChatGPT utilizes technology from Microsoft’s Bing search engine.
An email presented at the trial showed OpenAI’s rationale for seeking the partnership: “We believe having multiple partners, and in particular Google’s API, would enable us to provide a better product to users.” OpenAI’s initial outreach occurred in July, but Google declined the request in August, citing concerns about involving too many competitors. “We have no partnership with Google today,” Turley stated.
The Importance of Search for ChatGPT’s Future
Turley further elaborated on the critical role of search in enhancing ChatGPT’s capabilities, particularly in providing users with up-to-date and factual responses. He noted that the DOJ’s proposal to mandate Google to share search data with competitors could significantly accelerate OpenAI’s efforts to improve ChatGPT. He also mentioned that OpenAI is still “years away” from achieving its goal of independently handling 80% of user queries using its own search technology.
Scrutiny of Google’s Exclusive Agreements
The antitrust scrutiny of Google’s practices extends beyond its AI ambitions. In August, U.S. District Judge Amit Mehta determined that Google had protected its search monopoly through exclusive agreements with companies like Samsung to pre-install its search engine as the default on new devices.
Shifting Strategies and DOJ Demands
Documents presented at the trial indicated that Google had considered agreements with Android phone manufacturers, including Samsung, that would have extended exclusivity not only to its search app but also to its Gemini AI app and the Chrome browser. However, instead of pursuing more exclusive deals, Google has recently loosened its agreements with device makers Samsung and Motorola, as well as wireless carriers AT&T and Verizon, now permitting them to load competing search offerings.
These non-exclusive agreements align with Google’s suggested remedy to address Judge Mehta’s ruling. However, the DOJ is advocating for more stringent measures, including a ban on Google making substantial payments in exchange for the installation of its search app. Google executive Peter Fitzgerald testified that the company had sent letters as recently as last week, reiterating that its current agreements did not prevent these companies from installing other AI products on new devices.
