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Google Scrambles to Catch OpenAI—Inside the Fierce AI War for Supremacy 

 March 26, 2025

By  Joe Habscheid

Summary: Google’s rapid pivot to compete with OpenAI’s ChatGPT showcases the high stakes in artificial intelligence. From the rushed development of Bard to the restructuring of Google’s AI divisions, this is a case study in speed, ambition, and the tension between innovation and caution. Two years after ChatGPT’s release, Google has regained ground, but the competition is fiercer than ever.


The Race Begins: ChatGPT’s Disruptive Impact

In late 2022, OpenAI blindsided the tech industry with ChatGPT, reaching over a million users in a matter of days. Google, long seen as the leader in artificial intelligence, found itself trailing behind a much smaller competitor. While it had its own advanced language model, LaMDA, the company had hesitated to release it widely due to concerns about misinformation and ethical challenges. That caution had now cost Google its first-mover advantage.

In response, Google assigned Sissie Hsiao, a seasoned executive, to lead the charge. The directive was simple but daunting: build a ChatGPT competitor in just 100 days. Oversight and methodical development took a back seat—Google needed a product on the market, fast.

Forming Team Bard: 100 Days to Market

Hsiao assembled a group from across Google’s divisions, naming them “Team Bard.” With roughly 100 engineers, researchers, and product managers, the team worked under intense pressure, taking shortcuts that Google would typically avoid.

Massive computing resources were redirected to Bard’s creation, ensuring a swift development process. But speed came at a price. Like ChatGPT, Bard struggled with “hallucinations”—the tendency of AI to generate incorrect or misleading information. There were also concerns about inappropriate or biased outputs, which were difficult to fix in a rushed release cycle. To temper expectations, Google framed Bard as an “experiment” rather than a polished product.

Restructuring the AI Strategy: Google DeepMind Emerges

While Bard was being pushed to market, Google’s leadership recognized the need for deeper structural changes. The AI landscape was evolving rapidly, and fragmented efforts were slowing Google down.

The solution was a high-stakes merger of two internal AI powerhouses: Google Brain and DeepMind. Under the leadership of DeepMind founder Demis Hassabis, the new entity—Google DeepMind (GDM)—was given a singular focus: develop the next-generation language model, Gemini, that could outperform OpenAI’s systems.

This restructuring signaled Google’s shift from a sprawling set of AI projects to a more unified, aggressive approach. But it also meant significant layoffs, with 12,000 employees losing their jobs as resources were reprioritized.

Speed Over Safety: The Cost of Catching Up

Competition with OpenAI drove Google to cut corners in ways previously unthinkable. The company, which had long prided itself on rigorous AI testing, began accelerating product releases at the expense of safety reviews.

This new approach caused missteps. One of the most public embarrassments came during Bard’s initial launch, when it provided incorrect information about the James Webb Space Telescope. The mistake, seemingly minor, damaged Google’s credibility, reinforcing concerns that it had rushed the product to market without proper safeguards.

Despite these early setbacks, Google pressed ahead. It had fallen behind in the AI race, and the only way to recover was to sprint forward.

Gemini: Google’s Bid for AI Supremacy

By late 2023, those efforts began to pay off. Google DeepMind’s Gemini model, a direct competitor to OpenAI’s GPT-4, reportedly outperformed ChatGPT on many key benchmarks. While it was still flawed—prone to biases and unpredictable outputs—it represented a massive leap in AI capability.

Google wasted no time integrating Gemini across its ecosystem. From Search to Google Maps, Gemini-powered features began rolling out, embedding AI deeply into daily digital experiences. The message was clear: AI wasn’t just a separate tool—it was now a core part of Google’s entire platform.

The AI Arms Race: What Comes Next?

As of 2024, Google has regained lost ground, but the battle isn’t over. OpenAI, Microsoft, Anthropic, and other players are pushing forward with increasingly advanced models, and Apple is rumored to be making major AI moves.

This relentless competition raises important questions. How much risk is acceptable when deploying AI at scale? Will companies continue to prioritize speed over safety? And, ultimately, what are the ethical and societal consequences of AI that can generate human-like text, images, and decisions?

Google’s rapid turnaround demonstrates how quickly the AI landscape can shift. Just as OpenAI disrupted Google in 2022, new challengers may emerge to disrupt Google in return. The race is far from over.


#AICompetition #GoogleDeepMind #ChatGPT #GeminiAI #ArtificialIntelligence #TechRace

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Featured Image courtesy of Unsplash and Florian Schmetz (lbVKwIAZ6EY)

Joe Habscheid


Joe Habscheid is the founder of midmichiganai.com. A trilingual speaker fluent in Luxemburgese, German, and English, he grew up in Germany near Luxembourg. After obtaining a Master's in Physics in Germany, he moved to the U.S. and built a successful electronics manufacturing office. With an MBA and over 20 years of expertise transforming several small businesses into multi-seven-figure successes, Joe believes in using time wisely. His approach to consulting helps clients increase revenue and execute growth strategies. Joe's writings offer valuable insights into AI, marketing, politics, and general interests.

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