AI consolidation?

In exchanging model access for use of the highly concentrated computing resources they own and control, the tech giants are effectively buying themselves an insurance policy, ensuring that even if their own in-house AI efforts flop, their digital dominance will be maintained.

Microsoft’s $10 billion partnership with OpenAI, which similarly gives Microsoft privileged access to OpenAI’s technology while locking its dependence on Microsoft’s cloud computing infrastructure, is another clear illustration of this strategy. Other leading startups that have inked major deals with Big Tech firms include Hugging Face (Amazon), Cohere (Google, Nvidia), Stability AI (Amazon) and Inflection AI (Microsoft, Nvidia). These partnerships appear to be serving the same purpose as “killer acquisitions” in the past – think of Facebook’s acquisition of WhatsApp or Google’s purchase of YouTube – raising serious concerns about fair competition in the fledgling AI market.

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