Microsoft looks to revolutionize search and challenge Google

Morgan Stanley analyst Keith Weiss described the stakes,

“New Bing features four key innovations (detailed in a company blog post):

1. New Bing runs on a new large language model (LLM) developed with OpenAI, but more powerful than ChatGPT and customized specifically for search. 2. Microsoft Prometheus Model developed as a proprietary method of interacting with the large language model to best support the search modality. This innovation improves relevancy, annotates answers, provides more up-to-date. answers and works to best understand geolocation… 3. Applying AI model to core search algorithm which drives step-function improvement in relevancy, the largest increase in relevancy Microsoft has seen in over a decade. 4. Improved user experience as search, browser and chat are pulled together into a single unified experience; this primes New Bing to answer more complex queries and more seamless enable workflows (e.g. like making travel arrangements). .. With a revenue run rate exceeding $210 billion, Microsoft continually assesses large market opportunities to enable growth going forward, and at a $570 billion TAM [total addressable market], the digital advertising market looks to be an increasingly interesting focal point.”