Gates: Microsoft will keep Google honest

While Google has grabbed an early lead in search and Internet advertising, Microsoft Chairman Bill Gates pledged on Wednesday that his company would "keep them honest."

Speaking to a crowd of MSN's largest advertisers, Gates said that Microsoft would prefer not to be coming from behind.

"For Microsoft, we always want to be in the lead, making the breakthroughs," Gates said. But, in an onstage interview with ad executives and talk show host Donny Deutsch, Gates conceded that the company has made mistakes, including in some cases picking the wrong people to lead certain efforts.

He also gave credit to his rival, saying Google has "done a great job on search and what they've done with advertising." But, he reiterated his position that search today is still too much of a treasure hunt and promised that better things are in store.

"We will keep them honest, in the sense of being able to do better in a number of areas," Gates said.

With its annual MSN Strategic Account Summit, which runs through Thursday, Microsoft is both trying to hone its pitch to advertisers as well as reassure its investors, who have pushed Microsoft shares significantly lower since Microsoft announced plans last week to invest roughly $2 billion more than expected in its new businesses, largely MSN and Windows Live. [CNET News]

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