During the US antitrust trial against Google, Microsoft's CEO, Satya Nadella, testified, underscoring the fierce competition among major tech companies in acquiring essential content for training AI. Nadella voiced his concerns regarding Google's exclusive and expensive arrangements with publishers, which, in his view, monopolise valuable content. He likened this race for content to the early stages of distribution agreements, highlighting the crucial role of content libraries in training extensive language models. During his testimony, Nadella acknowledged the significance of investing in computing power and data for AI development but expressed reservations about exclusive content arrangements.

The trial centers on allegations that Google, holding a dominant position in the search market, engages in anticompetitive practices by making substantial payments to smartphone manufacturers and wireless carriers to secure its default search engine status.

Why does this matter?

The rivalry between Microsoft and Google, both expanding into AI, is on full display. It showcases their competition beyond search engines, potentially influencing the future of AI innovation. The trial's verdict will determine whether Google's market dominance is a result of quality or unlawful actions.