Microsoft CEO Satya Nadella says Google has advantages in search market, calls Bard a competitive product

Microsoft CEO Satya Nadella has often heaped praise on Google. Recently, during his testimony in US vs. Google antitrust trial, Nadella said that the Google search engine is better than his company's search engine, Bing. He also added that he would do anything to make it better. And now, in an interview with the CEO of Insider's parent company, Mathias Dopfner, Satya Nadella called Google's Bard a competitive product and said that when it comes to the online search space, the Sundar Pichai-led company has some "structural advantages."

Satya Nadella says Google has advantages in search

Earlier this year, at the time of launching Bing, Nadella had said that it intends to compete with Google in the search space and had referred to the tech giant as the '800 pound gorilla' in the market. He had also added that with what Microsoft brings to the table, he wants Google to 'come out and dance'.

Recently, Dopfher asked Nadella about his intentions of competing with Google and how it had been faring. Speaking about this, the Microsoft CEO said that they (Microsoft) have just 3 per cent share of global search while Google stands at 97 per cent. In such a scenario, Nadella added, even a small gain is an "exciting moment." He then said that Google is a "very strong company" and will emerge stronger. He also praised Google's AI chatbot Bard and project Gemini, which is still under development.

He said, "Bard is a very competitive product already. And they have a new model with Gemini. Google has a number of structural advantages right there: they already have the share, they control Android, they control Chrome. I always say that Google makes more money on Windows than all of Microsoft. It keeps us grounded."

On people asking questions from AI

Further, Nadella was asked about a shift in people's habits to ask questions from generative AI chatbots like Bard and Bing as opposed to Google search. Commenting on that, he said that even though the change is happening, it is a "slow-moving transition."

"Google can make that transition, and they're very much committed to making it. And you're right in pointing out that their business model will fundamentally have to change. So, it's a little bit like what happened to us with Windows. We had a fantastic business model until it wasn't anymore. Therefore, I think Google will be facing more challenges, and will have to fundamentally rethink its business model in the long run. But they definitely have a head start, because they already have all the users," he added.