Big Tech corporations prioritize investing in AI startups

According to financial market research tool Pitchbook, in 2023 alone, investors spent a total of 29.1 billion USD on nearly 700 generative AI transactions, an increase of more than 260% in value compared to the previous year. . Of which, a significant portion of strategic investment comes from corporations belonging to the Big Tech group.

Last week, Amazon Group (USA) announced it would continue to spend $2.75 billion on AI startup Anthropic. This is Amazon's highest-value venture, and also the latest example of the AI ​​'fever' that is forcing major technology corporations to open their wallets.

Anthropic is the developer behind the Claude AI model, which competes with Microsoft-backed OpenAI's ChatGPT and Google's Gemini. Along with Meta and Apple, all the tech giants are racing to integrate generative AI into their product and feature portfolios to ensure they don't fall behind, given the expected market context. predicted to reach $1 billion in revenue over the next decade.

Meta Group - which is developing its own model called Llama - said it is spending billions of dollars on Nvidia's graphics processors - one of many companies that have helped the chipmaker increase its revenue this year. recently increased by more than 250%.

Microsoft Corporation has started the business of investing in generative AI before, with an investment of 1 billion USD in OpenAI in 2019, and gradually increased the investment scale to about 13 billion USD. Microsoft uses many of OpenAI's models and offers open source models on its Azure cloud.

Google's 'parent corporation', Alphabet, acts as both an investor and a builder, focusing on integrating synthetic AI into search, document, map features. on Google's products. yourself, including the Gemini model. Last year, Google pledged to invest $2 billion in Anthropic, after confirming a 10% stake in the startup along with a major cloud deal between the two sides.

Recently, technology executives have emphasized a greater focus on generative AI development. Microsoft Chief Financial Officer Amy Hood said last year the company was adjusting its workforce toward prioritizing AI development. The boards of Google, Apple and Amazon have also announced to investors widespread cost cuts across divisions to redirect more funding toward AI-related efforts.

Daniel Newman, CEO of technology analysis firm Futurum Group, warns that technology companies need to become more discerning when investing in AI, as regulators globally tighten regulations. regulation of Big Tech, making it more difficult to make large-scale acquisitions, even the investments are attracting scrutiny.

In January, the US Federal Trade Commission (FTC) announced it would conduct an extensive investigation into the largest companies in the AI ​​field, including Amazon, Alphabet, Microsoft, Anthropic and OpenAI. Thereby, the FTC has the right to require companies to submit specific reports on their business activities.

Isabella Humphrey

Update 02 April 2024