In response to a consultation initiated by the European Commission regarding the competitive landscape of generative artificial intelligence (AI), Microsoft emphasized the dominance of Alphabet unit Google in this field. Microsoft highlighted Google's advantageous position stemming from its extensive data repositories and AI-optimized chips, underscoring the intense competition between the two tech giants.

Microsoft's report to the Commission emphasized Google's unparalleled integration across various AI layers, from semiconductor production to a robust mobile app store. According to Microsoft, this vertical integration grants Google significant strength and independence, particularly in training large language models like Gemini, showcased in its chatbot. Furthermore, Microsoft pointed out Google's access to vast proprietary data from platforms like Google Search Index and YouTube, setting it apart from other AI developers.

Addressing regulatory concerns, Microsoft advocated for pro-competitive partnerships in the AI sector to prevent the emergence of monopolistic advantages. Microsoft cited examples of such collaborations, including Anthropic with investments from Google and Amazon, France's Mistral with Microsoft's substantial investment, and Canada's Cohere with backing from Salesforce and Nvidia. By encouraging these partnerships, Microsoft contends that a more balanced competitive landscape can be fostered, mitigating the risk of anticompetitive practices and ensuring innovation thrives in the AI industry.