In a notable shift from his usual competitive stance, Elon Musk has publicly acknowledged Google as the current frontrunner in the artificial intelligence (AI) landscape. Musk, the CEO of xAI, stated that Google “currently has the highest probability of being the leader” in AI, attributing this to its “biggest compute (and data) advantage for now.” However, he quickly added that this leadership “may change in a few years,” indicating an expectation of dynamic shifts within the rapidly evolving AI sector.
Musk’s rare compliment towards Google coincided with an escalation of his ongoing dispute with Sam Altman and OpenAI. This backdrop adds a layer of intrigue to his assessment, as he simultaneously announced xAI’s intent to pursue “immediate legal action” against Apple, alleging bias towards OpenAI in its App Store rankings. Apple, through a spokesperson, has countered these claims, stating that the App Store is “designed to be fair and free of bias.”
Google’s foundational contributions to AI are widely recognized. In 2017, Google Research released the seminal paper “Attention Is All You Need,” which introduced the Transformer technology. This innovation has since become the underlying architecture for many large language models, including OpenAI’s ChatGPT. The search giant’s continued commitment to AI is reflected in its strategic investments, such as a 14% stake in Anthropic, an AI startup founded by former OpenAI employees. Furthermore, Google significantly increased its capital expenditures by $10 billion this year, raising the total to $85 billion, primarily to meet the escalating demand for chips and its AI products. Sundar Pichai, Google’s CEO, confirmed this investment strategy during a recent earnings call.
Beyond its technological advancements and financial commitments, Google’s prowess in AI has also garnered academic recognition. Last year, Demis Hassabis, CEO of Google DeepMind, was one of three researchers awarded the Nobel Prize in chemistry for Google DeepMind’s groundbreaking work on protein-structure prediction.
The relationship between Musk and OpenAI has been fraught since he co-founded the organization in 2015 and subsequently departed its board in 2018. Last year, Musk filed a lawsuit against OpenAI, accusing the ChatGPT developer of deviating from its original nonprofit mission, particularly after its partnership with Microsoft. In response, Musk launched his own AI startup, xAI, in July 2023, introducing its Grok chatbot later that year. xAI has since secured substantial funding, raising over $12 billion in Series A, B, and C funding rounds in 2024, reportedly valuing the company at $50 billion.
Looking ahead, Musk has indicated that his electric vehicle company, Tesla, will ask its shareholders to vote on whether to invest in xAI. He expressed his personal desire for such an investment, stating on July 13, “If it was up to me, Tesla would have invested in xAI long ago.” This potential cross-investment highlights Musk’s ambition to integrate AI capabilities across his various ventures, further intensifying the competitive landscape among major tech companies in the AI domain.
