Microsoft CEO Satya Nadella recently shared a surprising revelation: Google generates more revenue from the Windows ecosystem than Microsoft itself. Speaking on a podcast, Nadella candidly discussed the competitive dynamics between Microsoft and Google, focusing on search engines, browsers, and emerging AI technologies.
“Google Makes More Money on Windows Than Microsoft”
Highlighting the competition in the search and browser markets, Nadella noted how Google’s Chrome browser has become dominant despite Microsoft’s significant advantage in Windows distribution. “Chrome became the dominant browser, which is a real travesty because we had won against Netscape only to lose to Google,” Nadella explained. However, he expressed optimism about Microsoft’s ongoing efforts to reclaim browser market share with tools like Edge and Co-Pilot.
An Open System for Innovation
Nadella emphasized Windows’ position as an open platform, allowing equal opportunities for tools like OpenAI’s ChatGPT and Google Gemini. This openness, he argued, underscores Windows’ unique appeal compared to more controlled ecosystems. 
Apple Search Deal: A Strategic Perspective
Addressing Microsoft’s history with search partnerships, Nadella revealed his decade-long pursuit of a search deal with Apple. While unsuccessful, he expressed satisfaction with Apple’s partnership with OpenAI, noting its potential benefits for Microsoft due to its commercial and investment relationship with OpenAI.
The AI Race and Competitive Landscape
Nadella also touched on the fierce competition in the AI space, involving major players like Google, Meta, Amazon, and OpenAI. He acknowledged the growing relevance of AI-driven tools like ChatGPT, which are redefining traditional search paradigms by providing more interactive and personalized experiences.
Relitigating Market Share
Despite Google’s entrenched advantage due to default placements on Apple and Android devices, Nadella expressed confidence in Microsoft’s ability to challenge Google’s dominance. “This is the best news for Microsoft shareholders—that we lost so badly that we can now contest it and win back some share,” he remarked.
A Broader Warning on Monopolies
Reflecting on his testimony in last year’s antitrust trial against Google, Nadella warned about the implications of Google’s dominance. He highlighted how agreements with device manufacturers ensure Google remains the default search engine for millions, creating a near-unbreakable user habit. “You get up in the morning, you brush your teeth, and you search on Google,” Nadella said, emphasizing the difficulty of breaking such ingrained behaviors.
As Microsoft accelerates its efforts in browser, search, and AI innovation, Nadella’s comments underscore the company’s strategic push to reshape its competitive position in these key markets.
