[Big Tech Paradigm Shift] ① Fall Behind and Die... Reshaping the AI Battle

AI Changes Big Tech Landscape Following Internet and Smartphones
Google, Meta, Twitter, Amazon Counterattack Against MS's Lead
Shifting Speed Control Strategy and Accelerating Commercialization Pedal

"If you fall behind, you die." The competition among big tech companies to seize the lead in artificial intelligence (AI) is intensifying. As Microsoft (MS) surged ahead with ChatGPT, Google and Meta launched a counterattack. Twitter and Amazon have also joined the fray. Following the internet and smartphones, AI is emerging as the key to reshaping the industrial landscape, prompting big tech companies to revise their business strategies and reorganize their operations.

Google and Meta's AI Counterattack... Twitter and Amazon Join In

Recently, Google shared a document titled 'AI-Based Advertising 2023' with advertisers. It outlined plans to entrust generative AI with creating ad copy, images, and videos within a few months. By setting advertising budgets and goals, AI would automate everything from advertising strategies to content creation, effectively taking over the role of marketing agencies.

This signals a strategic shift for Google. Starting with transforming its stronghold?the advertising market?it declared its intention to accelerate AI commercialization. Until now, Google had been cautious about launching AI services due to legal and ethical risks.

To switch to an offensive stance, Google also reorganized its teams. On the 20th, Alphabet, Google's parent company, merged its AI research organization 'Brain' with DeepMind, the subsidiary that developed AlphaGo. The two teams have embarked on the 'Gemini' project, a massive AI model designed to surpass ChatGPT. This new project was launched after Google's ChatGPT rival 'Bard' failed to gain traction. Sundar Pichai, CEO of Alphabet, stated, "The pace of AI development has accelerated more than ever," adding, "We will focus all talent into one team to increase speed."

Meta has completely changed its strategy. Prioritizing AI over the metaverse?which even led to a company name change?Meta established a generative AI development team in February. It then introduced the massive AI model 'LLaMa.' Recently, Meta has detailed its commercialization plans, aiming to produce ads using generative AI within the year, similar to Google. Andrew Bosworth, Meta's Chief Technology Officer (CTO), said, "Mark Zuckerberg and other key executives are spending the most time on AI," adding, "AI will also be used in the metaverse."

Twitter and Amazon have also jumped in. Twitter CEO Elon Musk recently founded a new AI company called 'X.AI.' He declared the creation of 'Truth GPT,' a 'third option' pursuing truth beyond MS and Google. Amazon announced 'Bedrock,' a generative AI service. Leveraging Amazon Web Services (AWS), the world's largest cloud service, Amazon is differentiating itself by offering customized services for enterprise clients.

The AI Revolution Following the Internet and Smartphones

Companies are rushing into this battle because they see generative AI as a 'game changer.' It is considered the third revolution following the internet and smartphones. Generative AI can rapidly produce diverse content, potentially transforming industries and daily life entirely. Given the massive wave, there is a palpable sense of urgency that missing this trend could threaten survival. Just as Microsoft, dominant in the internet era, lost the smartphone throne to Google, the fate of these companies could change at any moment.

Signs of cracks are already appearing. Samsung Electronics is reportedly considering switching the default search engine on its Galaxy smartphones from Google to MS's Bing. Bing, which was the first to integrate generative AI like ChatGPT, has emerged as an alternative for smartphone manufacturers. If the search engine switch becomes a reality, Google, which dominates the search market, will inevitably be impacted. Since Samsung produces hundreds of millions of Google Android smartphones annually, Bing's market share could soar from under 3% to the 20% range.

MS is also shaking up the platform competition centered on Apple and Google's operating systems (OS). OpenAI, partnered with MS, has launched 'ChatGPT Plugins' and begun building a platform ecosystem. This allows ChatGPT to connect to specific internet-based services as if plugging code into content. With simple commands, users can perform all services such as shopping and restaurant reservations, leading some to say it is eyeing the role of an app store.

Seongmin Jeon, a professor in the Department of Business Administration at Gachon University, said, "Generative AI is as significant an event as the internet revolution and the invention of smartphones," adding, "Just as Kodak hesitated due to its existing film business after inventing the digital camera, allowing latecomers to achieve great success, the big tech landscape could change dramatically."