Ex-Google CEO Eric Schmidt Blames Work From Home, Flexible Hours for Falling Behind OpenAI, Praises Elon Musk's Leadership: 'Look At What He Gets Out Of People' (CORRECTED)

Editor’s Note: The headline and article originally misidentified Eric Schmidt as a co-founder of Google. This has been corrected.

Alphabet Inc.’s former CEO and Chair Eric Schmidt on Tuesday discussed the reasons behind Google’s loss of initiative to ChatGPT-maker OpenAI.

What Happened: In a conversation at Stanford University, Schmidt pointed out that Google chose to prioritize work-life balance and flexible working hours over winning.

“Google decided that work-life balance and going home early and working from home was more important than winning,” the former Google CEO stated, adding, “And the reason startups work is because people work like hell.”

See Also: Apple Has Reportedly Reversed iOS 18 Photos App Changes In Response To User Criticism: Here’s What Happened

He went on to highlight the importance of founders in driving a company’s success, particularly praising Tesla and SpaceX CEO Elon Musk. “As much as we can dislike Elon’s personal behavior, look at what he gets out of people,” he said.

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Why It Matters: In May, Deepwater Asset Management’s Gene Munster noted that while Google lags behind OpenAI by roughly six months in AI development, it remains about five years ahead of the rest of the industry.

Last month, OpenAI also teased the company’s upcoming AI model named SearchGPT, a direct competitor to Google’s flagship Search product. Although some analysts were not overwhelmingly impressed by it, the development echoes the intensifying rivalry between the two companies.

Previously, an internal email from Microsoft Corporation revealed that the company’s investment in OpenAI was driven by concerns about falling behind Google’s AI capabilities.

Earlier, concerns about OpenAI allegedly violating YouTube’s terms of service were also raised following which it was reported that the tech behemoth might be considering taking legal actions against ChatGPT-maker.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.