According to Chamath Palihapitiya, Google search will be the biggest loser of 2023

According to Chamath Palihapitiya, Google search will be the biggest loser of 2023

According to Chamath Palihapitiya, Google search will be the biggest loser of 2023

  • Chamath Palihapitiya is a venture capitalist who has invested in companies like Slack and Yammer.
  • Speaking on the business podcast All-In, Palihapitiya said Google search will be the biggest business loser of 2023.
  • Amid the rise of chatbots like ChatGPT, Palihapitiya said more companies will develop competitive search engines.

For years, Google has exerted unprecedented dominance over our ability to search the web.

But 2023 could be the year that Google’s kingdom ends its rule, according to venture capitalist Chamath Palihapitiya.

“I think the biggest potential business loser this year is Google search in terms of sheer profitability and engagement,” Palihapitiya said at the Everything in it Podcast on Friday.

That Everything in it Podcast is a business podcast co-hosted by four tech industry veterans – PayPal COO David Sacks, investor David Friedberg, entrepreneur Jason Calacanis and Palihapitiya.

One of the most obvious threats to Google is ChatGPT, a chatbot based on a new form of artificial intelligence called generative AI. Google issued a “Code Red” on the potentially competitive technology in late December, and CEO Sundar Pichai has already redirected certain teams to sharpen their focus on AI products, insiders reported.

However, Palihapitiya doesn’t think ChatGPT is the only reason why Google’s search business could be shaky this year.

“I think it’s easier for me to see where the usage is coming from than to choose OpenAI or ChatGPT in terms of usage,” he said.

The reason, he said, boils down to machine learning and working with artificial intelligence. Palihapitiya said these concepts fall into “two big buckets”.

The first is “learning,” which he defined as how a technology learns to make predictions. While the second is “inference,” which he said is getting search results from a typed query.

“The thing about learning, and what ChatGPT shows, is that they learned by crawling the entire web,” he said. “There are five or six other organizations that are able to search the entire web in terms of cost, computing power, quality of transformers, quality of AI.”

Given enough time and money, Palihapitiya said, companies like Microsoft, Oracle, “Chinese internet companies” and even Facebook could be potential competitors for Google search.

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