"It's a new day in search," Microsoft CEO Satya Nadella said Tuesday during an AI event held at the company's headquarters, saying that the "race starts today."
So far, Microsoft is making significant headway within AI and rising in popularity in the tech world.
Alphabet, he added, "got beaten to market by Microsoft" despite its investments in the space.
Alphabet Microsoft may be taking the lead on AI in the near term, but investors shouldn't sleep on Alphabet just yet.
"We believe GOOGL has the AI tech and scale to maintain/grow its leading user base," said Morgan Stanley's Brian Nowak in a Thursday note.