Microsoft declared war on Google's Microsoft CEO: it would destroy the high profit margins of the search business

Gelonghui Finance · Feb 9, 2023 03:24

Gronghui, Feb. 9 | Microsoft CEO Satya Nadella predicted on Tuesday that Microsoft's use of the artificial intelligence behind ChatGPT will overturn the Internet search market and destroy the high profit margins that support Google's core business. In an interview with the Financial Times, Nadella said, “From now on, the gross margin of search will fall forever”. Using artificial intelligence to supplement or even replace internet searches can dramatically increase costs for search companies. Nadella said she is willing to accept the search business as “unprofitable” in order to have an opportunity to encroach on Google's market share (Microsoft Search's market share is 3% compared to Google's 93%). Nadella added, “The profit margin of the search business will still exist, and it will increase Microsoft's existing profits. But the situation is different for Google; they have to defend profit margins.” Microsoft launched the new artificial intelligence search engine Bing (Bing) and Edge Browser on Tuesday. The new application will be supported by OpenAI with the latest technology. The new version of Bing runs on OpenAI's language model, is more advanced than ChatGPT, and can easily switch to an artificial intelligence chat mode. Analysis from data.ai shows that after Microsoft announced the integration of ChatGPT, global downloads of the Bing app soared tenfold overnight.

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微软宣战谷歌 微软CEO：将摧毁搜索业务的高利润率

Microsoft declared war on Google's Microsoft CEO: it would destroy the high profit margins of the search business

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微软宣战谷歌微软CEO：将摧毁搜索业务的高利润率