Microsoft CEO Satya Nadella recently stirred conversation by stating that Google earns more from Microsoft’s Windows operating system than Microsoft itself does. In an interview with BG2Pod, Nadella highlighted Windows’ open nature, allowing tools like Google’s Gemini, OpenAI’s ChatGPT, and Anthropic’s Claude to coexist with Microsoft’s own Copilot AI suite. He emphasized that Windows users are free to explore alternatives, underlining the operating system’s commitment to interoperability.

While Google doesn’t sell Windows, its presence across the platform generates substantial revenue through search and advertising. Chrome, Google’s web browser, dominates desktop usage, accounting for 66% of all sessions. When factoring out Safari’s 9% share, primarily tied to Apple devices, Chrome’s dominance is even clearer. Additionally, Google Search holds 85% of the market, with Microsoft’s Bing trailing far behind at just 3%. A separate report by Cloudflare suggests Google’s search market share may be as high as 88%.

This widespread adoption benefits Google financially, as its advertising model thrives on the sheer volume of users engaging with its services via Windows.

Nadella’s remarks come amid ongoing antitrust investigations into Microsoft’s business practices. Interestingly, Microsoft has also accused Google of monopolistic behavior, particularly regarding its deal with Apple to remain Safari’s default search engine. Reports reveal Google paid Apple $26 billion in 2021 alone to secure this arrangement. Microsoft, in contrast, has long sought a similar partnership with Apple but faced rejection, even offering up to $15 billion annually to make Bing the default search engine.

Apple’s reluctance was highlighted during Google’s recent antitrust hearing, where it was revealed that Microsoft even proposed offering Bing for free to Apple. Yet, Apple’s leadership dismissed the offer, citing Bing’s perceived quality issues.

With the rise of generative AI, Microsoft sees potential for change in the search market. Nadella expressed optimism about OpenAI’s partnership with Apple, which integrates ChatGPT across Apple’s ecosystem. He noted this development could indirectly benefit Microsoft, as it maintains both commercial and investor ties with OpenAI.

Meanwhile, Google faces challenges from emerging AI-powered search platforms like OpenAI’s ChatGPT Search. As AI reshapes how people interact with information, the traditional search engine dominance may face disruption, leaving both Microsoft and Google in a race to adapt.

Nadella’s comments reflect Microsoft’s determination to regain influence in search and AI, signaling a potentially transformative era in tech competition.

You can listen to the whole interview here: