Alphabet Inc. former CEO and Chairman Eric Schmidt on Tuesday discussed the reasons for Google’s Loss of initiative to ChatGPT-Manufacturer OpenAI.

What happened: In a conversation with Stanford UniversitySchmidt pointed out that Google prioritized work-life balance and flexible working hours over company success.

“Google decided that work-life balance, going home early and working from home were more important than winning,” the Google co-founder explained, adding, “And the reason startups work is because people work like crazy.”

See also: Apple reportedly rolled back changes to iOS 18 Photos app in response to user criticism: Here’s what happened

He further emphasized the importance of founders for the success of a company and particularly praised Tesla And SpaceX Managing Director Elon Musk“As much as we may dislike Elon’s personal behavior, look at what he gets out of people,” he said.

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Why it is important: In May, Gene Munster of Deepwater Asset Management found that while Google is about six months behind OpenAI in AI development, it is still about five years ahead of the rest of the industry.

Last month, OpenAI also announced the company’s upcoming AI model, which SearchGPTa direct competitor to Google’s flagship Seek product. Although some analysts were not overly impressed, the development reflects the growing rivalry between the two companies.

Previously an internal email from Microsoft Corporation announced that the company’s investment in OpenAI was due to concerns about falling behind Google’s AI capabilities.

Previously, there were concerns that OpenAI was allegedly violating YouTube The terms of service were also addressed, following reports that the tech giant may be considering taking legal action against the maker of ChatGPT.

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Disclaimer: This content was created in part using AI tools and reviewed and published by Benzinga editors.