• AI Wars

    In February 2024, the world was looking to Google to see what the search giant and long-time putative technical leader in artificial intelligence (AI) would do to compete in the massively hyped technology of generative AI. Over a year ago, OpenAI released ChatGPT, a text-generating chatbot that captured widespread attention. OpenAI would offer a range of new generative AI products as both user-facing applications and developer-facing application programing interfaces (APIs). In January 2023, Microsoft and OpenAI signed a $10 billion deal extending their exclusive partnership. Microsoft would continue to supply OpenAI with seemingly unlimited computing power from its Azure cloud, and Microsoft hoped that OpenAI's technology and brand would keep Microsoft at the center of the new generative AI boom. Microsoft announced that it would soon begin deploying OpenAI's technologies throughout its suite of products, from its Microsoft 365 productivity apps to its search engine Bing. Google needed to decide how to respond to the threat posed by OpenAI and Microsoft. Google had a decade of experience developing and deploying AI and machine learning (ML) technologies in its products, but much of their AI work happened in-house and behind the scenes. Google researchers had invented the transformer architecture that made the generative breakthroughs demonstrated by GPT possible. Breakthroughs in AI had been quietly supercharging Google products like Search and Ads for years, but most of the product work was internal and little of it had penetrated the public consciousness. Until 2022, Google leadership had been deliberately cautious about revealing the extent of their AI progress and opening Google's experimental AI tools to the public.
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  • Epic Games: Nineteen Eighty-Fortnite

    In the midst of intensifying public and political attention towards the market power of big technology, Epic Games in 2020 challenged the status quo that has existed for years in the Apple iOS and Google Android mobile application marketplaces and payment systems. Apple and Google removed Fortnite from their app stores after its developer Epic Games intentionally introduced an unauthorized payment system. Epic Games sued Apple and Google, alleging their monopolistic control over the distribution of apps and the unreasonable commission rate for in-app purchases. Epic rallied other application developers and its 350 million Fortnite users in its fight. The case begins with a brief history of Epic Games and some background on the antitrust issues around mobile platforms. Then, the case details the many actions taken by each side in the ensuing legal and public relations battle. The case provides context on future technologies, like cloud gaming, that will hinge on the issues already being fought over in 2020. The case challenges students to think about strategy for both the smaller complementor and the larger incumbent platform, and how to challenge and maintain market power respectively, in the context of looking forward to the future.
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