Google CEO prefers an independent Yahoo

Schmidt pans Microsoft acquisition effort as bad for the marketplace

Schmidt also recognized the likelihood that the Google-backed Android mobile platform would compete with Apple's iPhone.

"Both Apple and Google believe that the mobile space is going to be very large," Schmidt said.

Schmidt expressed excitement over the possibilities of artificial intelligence, particularly language conversion. "That alone will have a phenomenal impact," he said. Google has a language translation service called Google Translate, currently in a beta format.

Also, Schmidt denied any interest in serving as a running mate to likely Democratic Presidential candidate Barack Obama, emphasizing a commitment to Google.

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