TECHNOLOGY
Satya Nadella highlights Google’s dominance in browser and search markets, earning more from Windows than Microsoft.
Pravrajya Suruchi
Updated : Dec 17, 2024, 04:55 PM IST
In a recent podcast, Microsoft CEO Satya Nadella shared an intriguing insight, revealing that Google generates more revenue from the Windows operating system than Microsoft itself. He highlighted this surprising fact while discussing Microsoft’s strategy to regain market share in the browser and search engine market.
“Google makes more money on Windows than all of Microsoft,” Nadella remarked, referring to the dominance of Google’s Chrome browser over Microsoft’s offerings. He reflected on the past, noting how Microsoft once won the browser battle against Netscape, only to later lose to Google. Nadella emphasized that the company is now working to regain lost ground through tools like the Edge browser and its AI assistant, Co-Pilot.
He explained that Windows, being an open system, allows a level playing field for all AI tools, whether it’s OpenAI’s ChatGPT or Google’s Gemini. This openness, according to Nadella, is key to fostering innovation and competition.
Nadella also touched upon his efforts to secure a search partnership with Apple over the years. While Microsoft was unsuccessful in striking a deal, he expressed his happiness when OpenAI, backed by Microsoft, secured an agreement with Apple. “It’s better to have ChatGPT get that deal than anybody else,” he said, pointing out Microsoft’s strong ties with OpenAI.
Discussing the broader AI landscape, Nadella acknowledged the fierce competition among companies like Google, Amazon, Meta, and OpenAI. He described the race as highly competitive but not one where a single player will dominate. Nadella also highlighted the shift from traditional search engines to AI-powered tools, noting that platforms like ChatGPT are becoming more “stateful,” offering richer, more interactive experiences.
Despite Google’s strong distribution network through mobile and default settings on Apple and Android devices, Nadella expressed confidence in Microsoft’s ability to make a comeback. “We get to relitigate,” he said, referring to the opportunity to reclaim browser market share, calling it a promising scenario for Microsoft’s shareholders.
Nadella’s remarks come after his testimony in a 2022 antitrust trial, where he criticized Google’s dominance in the search market. He warned about the risks of monopolistic behavior, likening Google’s position to a deeply ingrained habit: “You get up in the morning, you brush your teeth, and you search on Google.”
Microsoft’s renewed efforts signal its determination to challenge Google’s stronghold and reshape the dynamics of both the browser and AI-driven search markets.
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