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Google Contemplated Exclusive Gemini AI Deals with Android Makers

Android Ecosystem president Sameer Samat presents the newest Gemini AI model capabilities during the Made by Google event in Mountain View, California, US, August 13, 2024. (Reuters)
Android Ecosystem president Sameer Samat presents the newest Gemini AI model capabilities during the Made by Google event in Mountain View, California, US, August 13, 2024. (Reuters)
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Google Contemplated Exclusive Gemini AI Deals with Android Makers

Android Ecosystem president Sameer Samat presents the newest Gemini AI model capabilities during the Made by Google event in Mountain View, California, US, August 13, 2024. (Reuters)
Android Ecosystem president Sameer Samat presents the newest Gemini AI model capabilities during the Made by Google event in Mountain View, California, US, August 13, 2024. (Reuters)

Alphabet's Google contemplated deals with Android phone makers such as Samsung last year that would provide exclusivity for not only its search app, but also for its Gemini AI app and Chrome browser, according to a document shown at the second day of an antitrust trial.

The US Department of Justice and a broad coalition of state attorneys general are seeking an order from a judge in Washington that would require Google to sell its Chrome browser and take other measures. They hope to end what the judge found was Google's monopoly in online search and related advertising.

In that ruling, US District Judge Amit Mehta found that Google protected its search monopoly through exclusive agreements with Samsung Electronics and others to have its search engine installed as the default on new devices.

Google entered a new, non-exclusive agreement with Samsung on April 1 that includes no restriction on the smartphone maker loading alternative search products, according to a document shown at trial.

Google had proposed loosening its agreements to address Mehta's ruling but had not announced it was already doing so.

Prosecutors raised concerns in opening statements on Monday that Google's search monopoly could give it advantages in AI, and that its AI products are another way to lead users to its search engine.

OpenAI's ChatGPT head of product Nick Turley is expected to take the stand on Tuesday and testify about how Google's exclusive agreements make it harder to distribute AI products such as ChatGPT.

Google has said the case is not about AI, and that it faces robust competition from companies including Meta Platforms.

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Microsoft Pledges to Protect European Operations, Unveils Data Center Expansion

A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. (Reuters)
A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. (Reuters)
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Microsoft Pledges to Protect European Operations, Unveils Data Center Expansion

A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. (Reuters)
A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. (Reuters)

Microsoft pledged Wednesday to fight any US government order to halt data center operations in Europe as it sought to soothe concerns among European customers that trans-Atlantic tensions would lead to service disruptions.

The company's president, Brad Smith, said it's not something that officials are talking about in Washington, D.C. but it is a “real concern” for Microsoft's customers across Europe, which include governments.

President Donald Trump has stoked tensions between the US and Europe with his tariff-fueled trade war, and alarmed European leaders with policy changes, including pausing intelligence sharing with Ukraine, that throw into doubt his administration's commitment to the trans-Atlantic relationship, The AP news reported.

Smith, speaking at an event in Brussels, tried to allay concerns as he announced that the company was expanding data center operations across Europe.

“What we want Europeans to know is that they can count on us,” he said in a speech.

“In the unlikely event we are ever ordered by any government anywhere in the world to suspend or cease cloud operations in Europe, we are committing that Microsoft will promptly and vigorously contest such a measure using all legal avenues available, including by pursuing litigation in court,” Smith wrote in a Wednesday blog post.

He noted that Microsoft has experience fighting lawsuits from the previous Trump administration as well as from former President Barack Obama’s administration.

“If we ever find ourselves losing we will put in place business continuity arrangements” that include storing computer code in Switzerland that European partners can access, he said.

Microsoft is making five digital commitments to Europe, including increasing its data center capacity by 40 in 16 countries over the next two years, Smith said. The expansion will cost tens of billions of dollars annually. Smith declined to be more specific about the cost when asked by reporters.

The expansion comes amid calls for Europe to assert tech and data sovereignty by weaning itself off reliance from big US cloud data service providers, including Microsoft, Amazon and, to a lesser extent, Google.

“Given recent geopolitical volatility, we recognize that European governments likely will consider additional options,” and Microsoft is committed to collaborating with European companies, Smith said.