Microsoft and Google Outperform Apple and Amazon in Generative AI 2023
With the emergence of generative artificial intelligence, several technology investors are focusing on the progress made by Google’s parent company Alphabet (GOOGL) and Microsoft (MSFT) with ChatGPT. So where do Amazon.com (AMZN) and Apple (AAPL), the creators of voice assistants Alexa and Siri that predicted ChatGPT, now stand in generative artificial intelligence?
According to industry observers, Amazon and Apple have fallen behind in the AI race. Amazon is pleased to deploy AI technology in its cloud-computing business, having withdrawn from selling smart home gadgets.
And Apple’s advancements in artificial intelligence have been modest, despite the company’s recruitment of top AI experts from Google and others. Apple stock is under increasing pressure to immediately handle AI applications on iPhones. As opposed to allowing consumers to use Chatbot-type applications that are remotely processed in the internet cloud.
Apple and Amazon are attempting to catch up while Google and Microsoft continue to grow their AI companies, reigniting an ongoing competition in the process.
Google Vs. Microsoft In Artificial Intelligence
The major concern for Google is whether it will lose market share to Microsoft in internet search. Others also question if the needed computer power of AI chatbot technology in internet search would reduce commercial margins.
Investors anticipate a rise in corporate demand for artificial intelligence-enhanced Microsoft Office productivity solutions. Microsoft now appears to be winning the AI public relations war.
Microsoft and Alphabet continue to make AI-based announcements, but investors should anticipate that the revenue gains from generative AI will be of a longer-term nature, according to a recent note from Evercore ISI analyst Kirk Materne.
In regards to generative AI, he continued, “It is too early to proclaim a winner, and the fact is that there will be numerous victors.”
Google and Microsoft are two AI-related companies to watch.
How This Generative AI Will Rewrite The Rules
OpenAI’s ChatGPT is just one of numerous generative AI technologies that might disrupt a variety of sectors by automatically generating text, graphics, video, and computer programming code. Furthermore, generative AI technology is already being utilized in a variety of fields. Marketing, advertising, medication development, legal contracts, video games, customer service, and digital art are included.
Google made its Bard chatbot available in the U.S. and the U.K. on March 21. It competes with OpenAI’s ChatGPT, whose largest backer is Microsoft.
Apple debuted Siri in October 2011 meantime. Alexa launched in 2014 on Amazon. According to analysts, voice assistants such as Siri and Alexa deliver restricted replies to simple requests. They receive no instruction on large databases such as ChatGPT.
IBD questioned the Google chatbot Bard why ChatGPT is superior to Siri and Alexa. ChatGPT is deemed superior than Alexa and Siri in terms of its capacity to engage in genuine conversations and access and interpret information from the actual world, according to Bard.
Amazon’s Artificial Intelligence Hugging Face
IDC forecasts that global shipments of smart-home devices would fall 2.6% to 874 million units this year.
Amazon, for its part, has teamed with artificial intelligence (AI) firm Hugging Face to expand its cloud computing business. Hugging Face, like OpenAI, has constructed enormous language models that serve as the foundation for developing AI applications. Hugging Face’s capabilities will be made available to Amazon Web Services’ cloud clients.
A recent client note from RBC Capital stated, “Although Amazon may appear to be at a relative disadvantage at the present, we believe they have the potential to be a quick following in generative workloads.”
“Although the agreement with Hugging Face offers Amazon access to the models that can be trained and deployed via SageMaker, the fact that Google and Microsoft do not control the models themselves might be perceived as a relative disadvantage,” the study continued. In addition, it is unclear if they have an obvious method for disseminating generative AI to make it more apparent to people outside Alexa devices.
According to the RBC analysis, Amazon utilizes AI technology throughout its core e-commerce operations. This comprises product suggestions for customers, search relevance, supply chain management, fraud detection, picture recognition, and customer service.
Will Generative AI Impact Apple Shares?
Meanwhile, the majority of Apple’s Siri developers have departed the business. John Giannandrea, Google’s head of artificial intelligence, was recruited by Apple in 2018. Samy Bengio, an artificial intelligence expert at Google, was hired by Apple in 2021.
Apple’s accomplishments remain obscure in the midst of the unexpected emergence of generative AI. According to a rumor, Giannandrea currently leads the development of Apple Car.
Moreover, Apple has a stake in the search engine competition between Microsoft and Google. iPhones utilize Google as their default search engine. Google pays Apple TAC, or “traffic acquisition charges.”
Additionally, if Microsoft gains search market share, the Google-Apple agreement might be affected, according to Tim Long, an analyst at Barclays.
“The buzz surrounding Bing/ChatGPT might force Google to strengthen the (search) agreement with Apple, perhaps at higher fees,” added Long. Moreover, he projected that Google paid Apple around $17 billion in 2022 for search rights on iPhones.
“Creating an enterprise-class search product would be incredibly costly and time intensive for Apple, but the firm has acquired a number of former Google AI and search professionals over the years, so it’s not inconceivable that this is in the works,” Long noted.
Apple is Acquiring AI Startups.
Apple has bought a number of artificial intelligence businesses, such as Drive.ai and Xnor.ai.
In addition, researchers anticipate an increase in the direct processing of information on cellphones rather than remotely in the internet cloud. For instance, Qualcomm (QCOM) is developing AI processing for smartphones running Google’s Android platform.
Local device processing will increase, according to Sridhar Ramaswamy, co-founder and CEO of internet search firm Neeva and former senior vice president at Google. Apple currently designs its own microprocessors, the central processing units of personal computers and mobile devices.
In a recent interview, he stated, “iPhones are equipped with GPUs to enable features such as Face ID.” For certain types of applications, a great deal can be done locally, but given the scope of Web search, this may not be an option.