Checkmate in three moves
How Google outplayed Microsoft and Apple's entire ecosystem
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I'm Tomer Jakov.
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Yesterday I sat down to watch the Google I/O 2025 keynote.
I remember times when Google I/O events were about Android updates, new Pixel devices, and developer tools. But this one was almost entirely focused on AI capabilities and integrations (as in the last couple of years)...
As usual, it was an impressive event with all the Silicon Valley gleam...
Everything is always sunshine and roses in Mountain View...
We heard about new models…
We saw demonstations of new features…
Google conquered the top AI spots in LM Arena.
But then something else hit me…
Google outplayed its direct competitors... And these aren't OpenAI or Claude.
While others obsess over token size and accuracy metrics, Google is laser-focused on empowering its ecosystem users with the best AI tools—all in one place.
They aren’t aiming to win the most accurate AI model award…
I mean that’s nice and all, but that’s not where the money comes from.
Google aim to win more clients by winning the AI ecosystem game.
Here's what I mean...
For decades, Google, Apple, and Microsoft battle for ecosystem dominance:
Apple built its walled garden of hardware and services
Microsoft leveraged its enterprise relationships and Windows platform
Google expanded through search and Android
Each created powerful network effects and user lock-in through their respective approaches.
For years it looked like Google lagged behind.
Apple users wouldn't switch for any feature...And good luck pitching "replace Microsoft with Google" to any business.
But the AI revolution has reshuffled the deck completely.
Google's strategy seems to be working!
When it comes to AI ecosystems, the strategy gap is becoming increasingly apparent as Google's comprehensive approach outpaces its rivals' fragmented efforts.
Let's dive into their strategic move…
The Ecosystem Stranglehold
Google has engineered an AI takeover that's remarkably comprehensive in scope.
The company announced 400 million monthly Gemini users at I/O, with Pro users growing at 45% (!!) They're building an AI user base comparable to the population of entire continents.
Google isn’t battling for algorithmic superiority, it's winning the game by embedding AI throughout every aspect of digital life.
Google's demonstrations revealed multiple dimensions of their strategy:
AI Mode in Search (Search is back after being buried by many)
Android XR glasses with Gemini integration showing as functional prototypes while Apple's offerings remain undisclosed
Veo 3 and Imagen 4 for content creation on steriods (you have to try!)
Gemini 2.5 Pro with enhanced Deep Think mode
Real time translation and dubbing in Google Meet
Boosting Gmail with AI (A boost much needed!)
Each of these components strengthens the others, creating a formidable competitive advantage. Google is building an interconnected AI reality where digital interactions increasingly flow through their ecosystem.
The Enterprise Prisoner
Microsoft invested $13 billion in OpenAI but faces challenges translating that investment into a cohesive ecosystem. Their Copilot approach appears to add AI assistants to existing products without deep integration between them...yet.
Microsoft reports "more than 1 million paid Copilot users," while Google's free Gemini user base reaches approximately 400 times that number. Their focus on enterprise solutions has left their consumer strategy underdeveloped, with limited options to counter Google's Android advantage.
Satya Nadella has consistently prioritized cloud services, but this focus on Azure may have come at the expense of consumer touchpoints that generate the data necessary for AI improvement.
This represents a structural disadvantage that even substantial OpenAI investment struggles to overcome.
The Luxury Laggard
Apple's approach to AI appears cautious to a fault.
Their delayed Apple Intelligence rollout suggests structural challenges in competing effectively in the AI era. Despite commanding a $3 trillion market cap, Apple's cloud infrastructure lags behind Google's, and their privacy-focused approach creates limitations for algorithmic development.
The company that transformed smartphones now watches as Google demonstrates XR glasses with real-time translation capabilities, while Apple's comparable offerings remain in development.
Their hardware excellence provides less competitive advantage when the underlying AI capabilities fall short.
Recent Q2 2025 data indicates Apple Intelligence features have reached adoption rates below 20% among eligible users (!!)
These numbers indicate that even their loyal customers haven't fully embraced these capabilities.
The premium Apple experience now faces questions about its AI competitiveness.
The Data Advantage
Google has created a remarkable data acquisition advantage.
Each interaction with Gemini, each Android device, and each Search query contributes to an intelligence system that continuously improves while competitors work to keep pace.
This represents a fundamental battle for AI dominance where Google's announced 50x increase in token processing capacity (revealed at I/O) demonstrates a computational advantage that continues to grow rather than stabilize.
The neural networks under development today will drive tomorrow's products and services, and Google's data advantage multiplies with each successive quarter.
The Challenge of Catching Up
Microsoft and Apple face a strategic hurdle beyond developing better AI.
They must address Google's integrated ecosystem advantage.
They do try, but it’s too slow (and maybe too late).
Google's Android XR platform has established partnerships with Samsung, Warby Parker, Gentle Monster, and XREAL, creating a hardware coalition that presents significant challenges for Apple and Microsoft to match.
Google is redefining the competitive landscape.
Their strategy positions Gemini as the underlying layer that powers everything from search results to smart glasses, creative tools to shopping experiences.
This represents a comprehensive AI integration that surpasses previous tech platform advantages in both scope and impact.
Strategic Implications for Industry Leaders
If you're leading innovation at an enterprise or startup, Google's current market position suggests three important considerations:
Integration creates advantages: Standalone AI solutions are becoming less competitive. The real value emerges from systems that connect intelligently and enhance each other.
Data strategy determines AI potential: Your organization's approach to collecting, processing, and deploying data establishes the upper boundaries of your AI capabilities – encompassing volume, velocity, and variety.
Ecosystem thinking is essential: Success in the AI era will come from building or participating in ecosystems that generate compounding advantages. Independent solutions face inherent constraints regardless of their technical excellence.
Looking Forward
The question now isn't whether Google has established an AI ecosystem advantage – the evidence clearly demonstrates this. The more relevant question is whether this advantage will translate into long-term market dominance, something that has proven difficult to maintain in technology markets.
Currently, Google holds the strongest position, but the competition for AI leadership remains in its early stages.
History reminds us that in technology, today's seemingly unassailable advantage often becomes tomorrow's case study in disruption.
What's your perspective on the AI ecosystem competition? Do you see Microsoft and Apple finding effective responses, or will Google's lead continue to expand?
Share your thoughts in the comments below.