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In mid-June 2019, Microsoft co-founder Bill Gates and CEO Satya Nadella received a rude awakening in an email warning that Google had officially gotten too far ahead on AI and that Microsoft may never catch up without investing in OpenAi.
With the subject line "Thoughts on OpenAI," the email came from Microsoft's chief technology officer, Kevin Scott, who is also the company’s executive vice president of AI. In it, Scott said that he was "very, very worried" that he had made "a mistake" by dismissing Google's initial AI efforts as a "game-playing stunt."
It turned out, Scott suggested, that instead of goofing around, Google had been building critical AI infrastructure that was already paying off, according to a competitive analysis of Google's products that Scott said showed that Google was competing even more effectively in search. Scott realized that while Google was already moving on to production for "larger scale, more interesting" AI models, it might take Microsoft "multiple years" before it could even attempt to compete with Google.
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