Microsoft is opening a new artificial intelligence (AI) unit in London, which is expected to create a turf with its biggest AI rival which is Google DeepMind. DeepMind is a UK-based company founded in 2010 and acquired by Google in 2014. Initially it was London-based and now it has grown within Google’s parent company Alphabet to become their core AI arm.
Reportedly, the announcement came after Microsoft hired Mustafa Suleyman, co-founder, DeepMind, to run its new AI division. With insights from a blog post published Sunday, Suleyman explained that Jordan Huffman, former researcher, DeepMind, will head the new London unit.
Dive into the deep!
From what it is understood London has the potential to become a battleground for top AI talent. Both Microsoft and Google are expected to ramp up recruitment efforts, offering high-paying packages and fostering a competitive environment. “ Increased investment and competition will likely lead to a faster pace of AI innovation in the UK. This could benefit various sectors such as healthcare, finance and manufacturing. This hub signifies Microsoft’s plan to become a major player in the consumer AI space. Let’s keep an eye out for advancements in products like Microsoft Copilot and integration of AI across their existing software suite,” Somdutta Singh, first-generation serial entrepreneur, founder and CEO, Assiduus Global Inc, LP Angel Investor and ex-member Niti Aayog, explained.
Experts suggest that the move by Microsoft might challenge DeepMind’s dominance in the UK AI landscape. Losing top talent to Microsoft could hinder their R&D. It is believed that Google might counter with competitive offers and expand its London presence. Critics argue that with two tech giants vying for their expertise, AI professionals can expect a surge in demand and higher salaries. However, whether in the long-term it’s a bubble that will burst as the AI hype-cycle we’re currently living through takes a down-turn is anyone’s guess.
Industry reacts!
Industry experts believe that London’s AI startups and scaleups combined with the presence of other AI giants such as Meta, and the wider UK’s pool of data science and AI talent can make the UK a leading hub for AI innovation globally. “The move by Microsoft to open its new AI division in London marks the start of what will likely be a major talent war between Google, Microsoft and the many other AI companies with development centres in the city. This can be good news for all the data scientists, AI engineers and similar talent who live in and around London and the wider UK. It can also make it harder for Google and similar incumbents to attract and retain its UK based workforce, particularly in the AI space,” Heather Dawe, chief data scientist, UST UK, highlighted.
For the time being Microsoft’s plan to form a base in London can further cement the UK’s reputation as an AI talent hotbed. “With expertise blossoming from diverse corners of the world, it’s clear that the stage is set for unprecedented innovation and collaboration in the AI domain. Embracing this dynamic momentum, it’s imperative for organisations to harness India’s vibrant talent while also exploring international avenues to propel transformative advancements in AI,” Ankush Sabharwal, co-founder and CEO, CoRover, concluded.
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