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MIT Professor says Microsoft's investment in ChatGPT has Google 'shook'

MIT David Austin Professor of Management, Marketing, IT and Data Science and 'The Hype Machine' Author Sinan Aral discusses how big of an advantage Microsoft has regarding its recent investment in ChatGPT.

You can see the entire interview here.

Key Video Takeaways

00:11 On Google being "shook"

00:23 On the "existential threat" of ChatGPT to Google

Video Transcript

SINAN ARAL: Well, I think time will tell. But I think it's an excellent bet, a billion to start, 10 billion to follow on in the investment. And as we have seen recently, it has Google shook a little bit, calling a code red, calling big names back to the company to talk about it, to think about strategy. And there's a good reason for that. ChatGPT is potentially an existential threat to Google's business because Google relies 60% of its revenue on search.

And ChatGPT offers an alternative to search, which is a one-stop question answering shop powered by AI. Microsoft has been struggling to compete on search with Bing, although they've been doing better over the years, but this could change the game of search entirely, which is core to Google's business.