The AP article: Gates Promises Tough Battle With Google, includes comments from Bill G. while in Israel.
He acknowledged the intense competition with Google, which dominates the highly profitable market for Web searches. But Gates said Web-search technology still has room to improve. "Internet search as it is today will be dramatically better in a few years, whether it's us or Google," he said. "We're both going to be making dramatic improvements there."
This is just about the same thing Bill G. told News.com at the beginning of the year when he said that the search of today is "nothing."
See Also: Gates Talks Google (via News.com)