The Big Tech AI “arms race” is ongoing and picking up its pace rapidly with well over 75 AI startups that are currently backed by tech giants such as Amazon, Google, Microsoft, and Nvidia. This, according to a new report from CBInsights.
CBInsights has recently examined every one of big tech’s AI investments in 2023 and highlight where these giants are “seeing the most opportunity.”
Big tech companies — Alphabet (Google), Amazon, Apple, Meta, Microsoft, and Nvidia — are said to be “betting big” on AI, the team at CBInights claims.
For instance, Microsoft’s market cap is “hovering at all-time highs as investors have gotten behind its embrace of the technology.”
Meanwhile, Nvidia joined the club “after cruising past the $1T and $2T market cap benchmarks in less than a year on the back of demand for its high-end AI chips.”
Where big tech is putting its money — including investments and acquisitions — “provides a window into each player’s strategy.”
The number of AI deals backed by the group “increased 57% in 2023 compared to 2022.”
Notably, Meta and Apple didn’t invest in “any AI startups in 2023, though Meta has been active in developing its own open-source AI models and Apple acquired an AI video compression startup last year.”
Although AI (artificial intelligence) is not a new concept, technological advancements in this area have drastically improved how service providers can harness the benefits of AI tech. For example, Regtech firms like Trulioo and Onfido are leveraging AI algorithms to enhance AML and KYC processes. AI has also been used by Fintechs like Klarna to reportedly perform the work of 700 human workers (mostly chatbots for customer service).
In addition to these applications, AI and machine learning may be used to improve critical decision-making processes – like determining an applicant’s creditworthiness and whether or not a business or individual should be approved for a loan.
Much like other emerging trends such as crypto and blockchain, AI has a lot of hype surrounding it due to heightened investor interest and excessive speculation – which can be influenced greatly by the retail markets.
Despite this hype, AI is promising but it may not be the most suitable tech for every use-case. For instance, many content creators are applying AI to generate articles and other forms of long and short-form content which clearly is not of a high quality. That’s because it lacks that human touch which is still needed in creating meaningful content for users with the context and audience in mind.