Microsoft has invested at least $13 billion in OpenAI, the firm responsible for ChatGPT.
In contrast to Google and Meta, which have concentrated on developing their own AI models, Microsoft and Amazon have gone down a different path in the artificial intelligence competition. Rather than developing exclusively in-house AI, they have made strategic investments in smaller artificial technology firms, acquiring access to their AI models and incorporating them into their services and products.
This partnership that Microsoft has with OpenAI grants exclusive access to advanced AI systems while providing OpenAI with the computational power required for development.
Another figure to ponder on –
Anthropic has secured major investments from both Amazon and Google: $4 billion from Amazon and up to $2 billion from Google.
Similar to the OpenAI example, Anthropic’s AI models are made available through their respective cloud platforms. Salesforce, whose CEO is TIME co-chair and owner Marc Benioff, is also an investor in Anthropic.
With these strategic investments, Microsoft and Amazon also reaffirm their positions as among the top companies for AI, using partnerships instead of depending on in-house development. These actions further reinforce their positions as among the leading artificial technology companies defining the future of AI.
I am Anek Bedi, founder and CEO of multiple IT companies with a keen interest in AI, though of putting this article together to educate my followers in the race for AI glory. So, grab a cup of coffee, as we explore how big companies are fighting it out in the AI space.
The race to AI glory
During the 2010s, AI scientists found that computational power increased directly to augment the performance of AI models. This understanding triggered an exponential growth in computing power devoted to training AI, doubling about every six months, say researchers at Epoch, an institute focused on AI.
But specialized semiconductor chips for such computation are expensive, as is the cost of employing engineers who can fine-tune them. OpenAI CEO Sam Altman unveiled the fact that running GPT-4 alone costs more than $100 million. The significant monetary requirements of AI creation led OpenAI, established first as a nonprofit in 2015, to reorganize and sign multibillion-dollar partnerships with Microsoft.
Anthropic has also entered partnerships with Amazon and Google. Google DeepMind, which directs Google’s AI research, was formed by combining Google Brain with DeepMind. This was a standalone startup company before it was acquired by Google in 2014.
Such strategic alliances have accelerated breakthroughs in AI. GPT-4 from OpenAI, Claude 3 Opus from Anthropic, and Gemini Ultra from Google DeepMind are regarded as the most powerful AI models today. Meta, as opposed to OpenAI and Anthropic, has had a different strategy in place by providing greater access to its AI models. This approach motivates outside developers to enhance them as well as welcome researchers who favor open collaboration.
Artificial intelligence has emerged as a major driver of business success, with Microsoft and Amazon seeing record revenues during their last earnings calls, largely due to their AI initiatives. Although their AI startup investments have paid off, both firms are now looking to build their own in-house large-scale AI models.
In accordance to Neil Thompson, FutureTech research project director at MIT, developing AI models in-house might be more affordable and easier to control than obtaining them by license from independent artificial technology organizations.
Beyond big tech, OpenAI’s Altman has been actively pitching his company’s AI solutions to major corporations, including Microsoft’s customer base. As the AI landscape evolves, the competition among the top artificial intelligence companies is intensifying, with both established tech giants and emerging startups striving for dominance.
Who will be the big winners?
Whether or not large tech firms will eventually outrun their smaller AI investees is uncertain. But if they do, it could fundamentally restructure market competition and shape the way cutting-edge AI systems are created and brought to market for societal good.
With more companies moving into the foundation model space would create competition is argued by some. The reality may be otherwise. Amba Kak, co-executive director of the AI Now Institute, is confident that vertical integration will only intensify the grip of existing powerful artificial technology firms.
“To frame this as ‘more competition’ would be the most creative corporate spin,” she said to TIME, cautioning that such explanations distract from the increasing consolidation of power in tech. She also noted that regulators such as the UK’s CMA, the FTC, and the European Commission are watching these developments closely under antitrust legislation.
The increasing power of big tech in AI is also worrying for another reason. This is because most of the smaller AI companies at the forefront of the industry have started to create AI responsibly. OpenAI was created to develop digital intelligence for the benefit of humanity, and Anthropic’s objective has been to fuel core AI research and roll out systems that are both able and trustworthy.
Anton Korinek, a professor of economics at the University of Virginia, adds that these labs for AI such as OpenAI, Anthropic, and DeepMind were founded on an idealist base. Large publicly held corporations, in contrast, are tied to shareholders’ interests and thus will have their priorities primarily centered on profits over any positive impact on society.
As the competition intensifies among the top artificial intelligence companies, the challenge will be ensuring that AI’s development remains aligned with ethical and societal goals. If big tech consolidates too much control, it could shift AI’s trajectory away from its original purpose. This could mean creating technology that serves humanity rather than just maximizing profits.
What does this mean for small businesses?
And now with all the big numbers and the big names, you might be wondering how this i going to impact small businesses. This is the time to adapt and evolve. When you accept change, you can come up in the AI rat race.
With top artificial intelligence companies, fighting for AI glory, we should focus on keeping our momentum moving and gaining sufficient traction.
And with that I conclude the article, giving all you raiders to ponder on what should be your next move.
Till we meet again, cheers!
