07:27 AM EDT, 03/15/2024 (MT Newswires) -- Microsoft ( MSFT ) has told the European Commission that Alphabet's (GOOG, GOOGL) Google ( GOOG ) has a competitive advantage in generative artificial intelligence given its supply of AI semiconductors and large sets of proprietary data from YouTube ( GOOG ) and Google Search, Reuters reported Thursday, citing a report that Microsoft ( MSFT ) sent to the Commission.

"Today, only one company - Google ( GOOG ) - is vertically integrated in a manner that provides it with strength and independence at every AI layer from chips to a thriving mobile app store. Everyone else must rely on partnerships to innovate and compete," Microsoft ( MSFT ) said in the report. Reuters said the report is part of the consultation process that the European Commission initiated in January on the competition in generative AI.

Microsoft ( MSFT ) said Google ( GOOG ) has access to billions of videos on its YouTube ( GOOG ) platform, as well as data from its AI-powered voice assistant, while other AI developers do not.

Reuters said a Google ( GOOG ) spokesperson responded to Microsoft's ( MSFT ) comments, saying, "we hope the Commission's study will shine a light on companies that don't offer the openness of Google Cloud or have a long history of locking-in customers - and who are bringing that same approach to AI services."

Google ( GOOG ) and Microsoft ( MSFT ) did not immediately respond to MT Newswires' request for comments.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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