Microsoft CEO, Satya Nadella, has expressed concerns about tech giants competing for extensive content required to train artificial intelligence, specifically criticizing Google for securing costly and exclusive agreements with publishers, effectively monopolizing content.
Amid the ongoing U.S. trial against Google, Nadella drew parallels between these efforts and the initial stages of distribution deals. This trial marks a significant antitrust case for the U.S., reminiscent of the one filed against Microsoft in 1998.
The U.S. Justice Department’s antitrust battle against Google revolves around distribution agreements, which are seen as the central issue. According to the government, Google, which holds around 90% of the search market, engages in illegal practices by paying approximately $10 billion each year to smartphone manufacturers such as Apple and wireless carriers like AT&T (T.N) to secure its position as the default search engine on their devices.
This dominance in the search industry gives Google significant influence in the highly profitable advertising market, thereby enhancing its profits.
Nadella emphasized the importance of computing power and data for developing artificial intelligence. He expressed no concerns about investing in servers for this purpose. However, he raised concerns about unnamed companies, likely referring to Google, securing exclusive agreements with major content creators.
According to Nadella, publishers have informed him that Google offers exclusive deals and expects others to match their financial offers.