Will ChatGPT threaten Google's Monopoly?
ChatGPT has taken the world by storm. Just within a few months of its release, the chatbox has managed to surpass more than 100 million active users. Operated by OpenAI, which is owned by Microsoft, this has come across as a major coup against Google. Before we get into the why and how, let’s start with the what.
What is ChatGPT?
ChatGPT is a chatbot that is able to provide detailed responses to queries ranging across vast domains in a well-articulated manner. From poetry, rap lyrics to codes, it is able to do it all. As a result, it has captured the netizens’ imagination and is on par to become the next big thing on the internet. In fact, the growth rate of ChatGPT has surpassed the record previously held by Tiktok.
How does ChatGPT threaten Google?
The search engine market is currently valued at around $167 billion USD. With Microsoft’s Bing owning about 9 percent of this space, Google currently enjoys near absolute monopoly in this space (94 percent). With Google having virtually no competition in this space for decades, Microsoft has finally unleashed its weapon i.e. ChatGPT.
Microsoft has recently rolled out the new Bing, which incorporates the ChatGPT. And with the chatbox having caused a storm, users have been downloading the Bing app and signing-up on the waitlist to access the new AI powered Bing in record numbers.
There is a reason why we talk about the first mover’s advantage. Google has its own chatbox called LaMDA, developed by its subsidiary called Deepmind. However, it is still in the beta testing phase. The fact that Microsoft was able to roll their AI out for public use first means that Bing is getting a surge that it has not gotten in decades. Also, from internal reports, it has been said that Google’s chatbot is far from seeing the light of the day when it comes to public release. This has provided Microsoft with a competitive edge.
How will AI change the internet?
As a kid who grew up in the 90s, I was lucky to witness the evolution of the new internet i.e from text based mindless scrolling to curated search response through Google’s search engine and transition to video and streaming capabilities. Google managed to beat its competitors Yahoo and Microsoft during this transition period. Microsoft’s lethargy in not updating its outdated browser spelled doomed for the infamous internet explorer browser. Google Chrome today commands more than 65 percent of the browser market. As the search engine is its own in-house search engine, users shifted to Google in droves. It seems that a similar thing is at play right now. Tech companies have been touting AI as the next big thing or the next logical generation leap when it comes to the internet. And towards that Microsoft has clearly drawn first blood with its ChatGPT.
This is not to say that Google’s demise is inevitable. Like mentioned above, Google has its own chatbox being developed currently. With ChatGPT having become a sensation, Google has been scrambling to get its own AI powered search engine rolled out as soon as possible. However, the first mover’s advantage goes to Microsoft. Competition drives innovation and BrandGuff is excited to see the evolution of the next generation internet in real time. Whoever comes out on top, kudos to Microsoft for bringing a paradigm shift in an otherwise stagnant and almost monopolistic search engine space. As Satya Nadella, CEO of Microsoft, said himself:
They're the 800-pound gorilla in this … And I hope that, with our innovation, they will definitely want to come out and show that they can dance. And I want people to know that we made them dance, and I think that'll be a great day!
