ColdFusion - Google Panics Over ChatGPT [The AI Wars Have Begun]

Episode Date: April 17, 2026

Google's newly announced BARD AI system is mentioned at 12:25 In this episode we see why Google has called a code red because of ChatGPT but why? Why is ChatGPT such a threat? And what are Google doing about it? In this episode we find out. Animations by: https://www.youtube.com/@ThenWhatHappens ColdFusion Podcast: https://www.youtube.com/@ThroughTheWeb ColdFusion Music: https://www.youtube.com/@burnwatermusic7421 http://burnwater.bandcamp.com Last Track: https://youtu.be/dBy8KQH4rpU Previous AI video: https://youtu.be/0uQqMxXoNVs Get my book: http://bit.ly/NewThinkingbook ColdFusion Socials: https://discord.gg/coldfusion https://facebook.com/ColdFusionTV https://twitter.com/ColdFusion_TV https://instagram.com/coldfusiontv Producer: Dagogo Altraide Writer: Meehan Kathan and Dagogo Altraide Editor: Tanzim Uddin and Dagogo Altraide ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Learn more about your ad choices. Visit megaphone.fm/adchoices

Hi, welcome to another episode of Coldfusion. This was Google in 1998. So we're right between that house and this house. We're renting this half of a house. Ping pong table, computer. Go to the other side of the office. There's Larry. CEO of Google.

Say something like that. It was a small company run out of the garage of Susan Wigiski, who is, interestingly, the current CEO of YouTube. Simply from recognising the value of organising information on the web, Google managed to grow from a few tinkering PhD students to a formidable giant that now owns over 90% of search and carries out over 8 billion search queries per day. For two decades now, Google has been the undisputed king of web searches.

The term Google has been synonymous with searching for information. Need a recipe or a movie review or just settling an argument with a friend? You can just Google it. With a net worth of $1.15 trillion in 2022, they seem unstoppable. So what exactly could make a massive company like Google panic? So much so that they issued an internal code red. Well, it's OpenAI's chat GPT, of course. With Microsoft's plans to integrate the AI system into their search engine, Bing,

Google Search may face a serious threat for the first time in its history. Could this be one of the biggest technology story arcs in history? While making this episode, I kind of felt like we're at the beginning of an AI war. So in the following, we'll learn what Google might do about the situation. They're actually already fighting back. We'll get into that. And we'll also see why exactly chat GPT is such a threat to Google's central business model. Let's take a look.

Going to transform just about every industry, including education. ChatGPT passed the U.S. medical licensing exam, the bar exam and got to be on a Wharton MBA paper. A conversational chatbot, capable of responding to any query in a human-like manner, always seemed to be a technology of the future for the masses anyway, until ChatGPT. Following its release, ChatGPT has garnered huge attention from around the world. To give you an idea of the scale of this moment, chat GPT has been the fastest app in history to reach 100 million users. It's taken just two months, whereas TikTok took 9 and Instagram 30. A rapid adoption rate is a classic early signal of a disruptive product or technology.

A couple of months ago, we took a deep dive into chat GPT. Since then, it's been updated and is better than ever. However, as I previously stated, it's important to know that it's not perfect and may sometimes give bias or outright incorrect information. If you want to see that episode on ChatGPT and to open AIS views on the future of these systems in more detail, the link for that episode can be found in the description below. Microsoft is looking to capitalize, namely by putting this technology in their search engine, Bing. The massive implications of this will be discussed later in the episode. But for now, we've got to find out something. How did Microsoft and Open AI get involved with each other in the first place?

The alliance between the two started in 2019 when Microsoft invested $1 billion into Open AI. This was very crucial for both companies. Open AI needed some cash as well as the computing power of Microsoft's Azure Cloud services. This allowed the AI research firm to scale and drastically reduce its operating costs. Microsoft, on the other hand, was able to work. acquire Open AI's intellectual property portfolio in the process. In essence, Microsoft now has access to some of the world's best AI technology,

giving it a competitive edge over other major players in the tech industry. Since then, Microsoft and Open AI have been working together on various projects. And specifically, ChatGPT, CEO Saty Nadell is saying its impact will be, quote, at the magnitude of the personal computer, the internet, devices and the cloud. When Microsoft made the bombshell announcement that they were integrating chat GPT into Bing, Google was in shock. An emergency code red situation was declared, and I could imagine the frantic meetings.

One Google executive told the New York Times, it was a make-or-break moment for the company. But wait, this is Google we're talking about. The company, with far and away the world's leading search engine, they dominate 90% of search queries. Microsoft, with their dinky little Bing, accounts for only 9% of worldwide desktop searches in 2022. So why is Google panicking? Google is looking at what might happen in the future and not what's happening today. Chatbots are not new, but the level of performance seen by chat GPT definitely is. The thing that sets it apart from the MediCorps chatbots of the past is that it's a generative pre-trained transformer, or GPT.

In plain language, it just means. that has been trained on billions of parameters and petabytes of texts. This training allows the system to generate new text in a way that mimics the understanding of a wide range of queries and can respond accordingly. ChatGPT, or the inevitable flood of AI assistance, has the potential to revolutionize how we interact with search engines. Microsoft could see this as well, and that's why they've been betting on OpenAI and its technology.

For a second, I just want you to stop and think about it. If an AI-powered search engine gave you the specific information or answer you want in a concise manner, but you could also ask further questions and drill down into the details that you want, this would be revolutionary. You don't have to click through a bunch of links and waste your time. Right now, if you want a specific answer, you have to Google what you're looking for, get a bunch of results that may or may not fit, and if it's specific enough, you end up going to a forum anyway and searching through all the answers there.

In this AI-powered search engine world, the answer would already be synthesized for you, and this is because the AI has already crawled through the whole web and read it already. And I think this is where AI-powered search will excel the most. For very specific problems, just this implication alone is huge. Obviously, if you want to know something political or something that could have a slant or bias, that's another story. It has Google shook a little bit, calling a code red. And there's a good reason for that.

Chat GPT is potentially an existential threat to Google's business because Google relies 60% of its revenue on search and chat GPT offers an alternative to search, which is a one-stop question answering shop powered by AI. But this could change the game of search entirely, which is core to Google's business. If Open AI integrates a chat GPT-like language model into Bing's search engine,

people would just be able to find the results that they need without having to scroll through a flat page of search results that are littered with ads. This may be good news for users, but for a company like Google, it's very bad news. And why is this so bad for Google? Because roughly 60% of their revenue comes from Google's search. If the magnitude of this income becomes significantly damaged, it could be catastrophic. Google's business model is centered around advertising. It's been their long-standing primary source of revenue.

By charging companies for promoted search links or ad-sense links on websites, the company has built a lucrative business model. But it's clear that ChatGPT's integration with Bing has the potential to disrupt this entire system. If that doesn't sound bad enough, the creator of Gmail himself said that ChatGPT will destroy Google's business in two years. While I don't think this is the case, because Google isn't going to just sit still as you'll soon see, It still is interesting that he said this. In January of 2023, the Department of Justice filed an antitrust lawsuit against Google. They stated, quote, Google has used anti-competitive, exclusionary and unlawful means

to eliminate or severely diminish any threats to its dominance over digital advertising technologies. This isn't to mention the 12,000 Google employees that will recently let go. This is probably due to higher interest rates and a changing market. But still, all things considered, these are some of the biggest challenges Google has seen in its 20 years of dominance. So it's no surprise that the company issued the code red. But here's the crazy thing. They even sought help from their co-founders, Larry Page and Sergey Brin, both of which had stepped down from their executive positions back in 2019 and have not been actively involved in the company's operations. According to the New York Times,

the pair was invited to an executive meeting to strategize on how to integrate chatbot features, into Google's search engine. They were also said to be devising a plan for the company's AI operations. According to Forbes, Sergei Bryn has requested access into Google's internal code and he was taking a look at some Lambda code.

This could indicate that Google will be using Lambda in their response to Open AI. When Google calls them the old guard, you know things are getting serious. Meanwhile, Microsoft is going all out. They're going to be investing an extra $10 billion into OpenAI. As part of the new agreement, Microsoft will receive 75% of Open AI profits until it recoups

its investment and then will hold a 49% stake in the company afterwards. Unfortunately, this is the antithesis of what the Open AI company originally stood for. If all goes well, this may turn out to be one of the best business deals of the decade. Right now, Chrome is the default option for Android and Google pays Apple huge sums of money just to be the default option on iPhones and MacOS devices. This has no doubt worked wonders for Google in the past, especially since there's been no real alternative. But now that Bing could eat some market share,

I think Google will use their default status and dominating market share to their advantage while they hit back. This is how I think things may play out if Google gets their act together. So Google are probably going to rapidly prototype and release an AI-powered search engine competitor integrated into Google Chrome. And because Google Chrome is the default browser for so many, this new tool will gain widespread adoption without much effort and end up killing Bing AI before it really gets a chance to start. Now I could be wrong, but it just seems like Google has to make a major move like this.

It's reported that Google is working on 20 AI projects, including image generation tools, a product for prototype app testing and even a green screen mode for YouTube creators. One of the most interesting pieces of research is MusicLM, an AI that can transform whistled or humming melodies into a certain style which is described in text. So it's clear that Google isn't sleeping. In a staff memo, CEO Sandhāpichai wrote, quote, I am confident about the huge opportunity in front of us, thanks to the strength of our mission, the value of our products and services, and our early investments in AI. To fully capture it, we'll have to make some tough choices. And I think that last sentence is key.

It seems like Google may be forced to put the safety issues on the back seat and will just start unleashing the AI products. They could turn the playing field around quite quickly. And this is some news just in. According to CNBC, Google is currently testing a chat GPT competitor called Apprentice Bard internally with its employees. And also, a group of engineers have left open AI and started their own AI company and their first product,

Claude is similar to ChatGPT, but better in some cases. The company called Anthropic AI has already raised over $1 billion. And guess what? Google just invested $300 million. Things are really heating up now. But for those of you who are really into technology, something doesn't add up here. Google has been working on AI technology for a long time. Even as far back as 2016, Google CEO Sandhapichai wanted to make Google, quote,

an AI-first company. So how could they be caught with their pants down like this? Well, in a twist of irony, Google inadvertently gave open AI the keys to the castle. In 2017, Google researchers published a paper that would silently change the world. It outlined a method of processing text, images and more. It was called a transformer, and their technique allowed an AI to focus on specific parts of an input rather than having to process the entire sequence. This allows for more effective and efficient processing of language data. So in a way, it was this groundbreaking work from Google scientists that later led to the development of OpenAIS chat GPT.

The problem for Google is that they moved too slowly, and this was due to safety concerns, and rightly so. Such a large company has a lofty reputation. An offensive or misleading AI would be of high reputational risk for Google. In general, even though AI language management models feel very human-like, they occasionally produce illogical or outright false information. And due to these reasons, Google has released nothing publicly. But the unavoidable consequence was frustrated researchers, so some of them have left to raise money for their own AI startups.

That being said, Google does have several language models for internal use, the most famous of which was Lambda. This language model made headlines in June of 2022, when a former Google engineer claimed it was sentient. While that may not be true, it was certainly sophisticated. So let's wrap this episode up by taking a look at what we know so far about an AI-powered Microsoft search engine. Microsoft is expected to launch Bing with some chat GPT features at the end of March. There is still some growing speculation about how the AI system will be integrated into the search engine.

One possibility is that chat GPT could allow users to just communicate with Bing in a more human-like way. You don't have to worry about keywords. You just ask Bing the question in the same way that you would ask another person. An anonymous Microsoft source told Bloomberg that more conversational and contextual responses to queries will win over users by providing better quality answers that go beyond links. Bing is about to get the features of Dali 2, that text to image generator that caused such a stir and kicked off this latest wave of AI art. This integration will allow users to type in text and generate images.

this feature will be particularly beneficial for searches where images don't currently exist. Essentially, it will allow users to create new images on demand. Microsoft has said that they're working closely with Open AI so this feature doesn't generate explicit or inappropriate visuals. So, it looks like Bing is getting a major overhaul with ChatGPT and Dali 2 features integrated. It sure is going to grab everyone's attention when it's launched. How exactly this pans out still remains to be seen, but I certainly am intrigued and will be interesting to see how this plays out. So we may be on the cusp of a

new error in which the search engine that we know becomes a thing of the past. The digital directories of old will become the digital assistance of the future. So I'm going to make it clear. Google's search isn't going anywhere anytime soon, but it's so interesting to think that there could be a legitimate contender around the corner and from Microsoft being of all places. Just think A year or two ago, no one would have seen this coming. It's just amazing how fast things are moving. So what are your thoughts? A link-based search results going to expire? Do you think you're going to warm up to an AI bot serving you the information that you need? Will Bing become a verb? And finally, do you think Google will hit back faster than we all expect? Please let me know in the comments section. It's going to be an interesting discussion.

All right, so that's about it for me. Feel free to have a browse through the Cold Fusion channel. There's plenty of interesting topics on AI, technology, business and much more. And also, don't forget to check out the chat GPT video linked below. So thanks for watching. My name is Doggo, and you'll be watching Cold Fusion, and I'll catch you again soon for the next episode. I'm going to play you out with a new track I made over on the second channel. Cheers, guys. Have a good one.