Google Faces AI Innovation Dilemma as Startups Threaten Search Disruption
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Alphabet (Google) pioneered transformer AI models but failed to capitalize on the technology, leaving an opening for startups like OpenAI.
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Like Kodak with digital cameras, Google faces the "innovator's dilemma" - it can't fully embrace a disruptive technology without undermining its core business.
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OpenAI and other startups now threaten to disrupt Google Search with conversational AI that provides answers directly instead of links.
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Google's greatest asset is its unrivaled data troves from Search, YouTube, Gmail etc. that could allow it to build superior customized AI.
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Activist investors may pressure Alphabet to more aggressively pursue AI opportunities before startups reach escape velocity in the classic technology S-curve.