Microsoft-and-Google

The fierce competition between Google and Microsoft for domination in artificial intelligence

In the age of technology, where people with big wallets frequently acquire the people who make things, it seems that all it takes to stand out is two words in an elevator pitch. The two terms are artificial intelligence (AI), and major IT businesses now in the market have invested a staggering $12 billion (and more) in just two companies: Anthropic and OpenAI.

To close the funding gap that caused Microsoft to invest $10 billion in OpenAI the company produced a "shock and awe" moment last November when it unveiled ChatGPT, a chatbot that may eventually eliminate human creativity Google recently invested $2 billion in Anthropic, and Amazon pledged to contribute an additional $4 billion.

Naturally, just 25% of the pledge would be fulfilled right now according to the Google and Anthropic agreement, which was revealed by the Wall Street Journal. It is unclear what limitations and conditions apply, if any. Whatever the case, the truth is that for businesses who can claim to be leaders in AI, this is payday.

LLM Can Be Used by Others, And AI is Not New

This does not imply that there aren't other people working in this field with the AI tag and producing quality work; this is simply not as great an innovation as some would have us believe. Recently, a former coworker went to great lengths to clarify that artificial intelligence was also involved in a four-wheeler's self-switching turn indication. How come this technology isn't available on bikes if the industry is this intelligent?

Considering that Anthropic and OpenAI both operate with sizable language models, there is still a good chance that a different startup will reveal a new feature that expands on the ones already available. But the Big Tech companies rush to invest in everything AI only indicates a strong desire to join or even own already-existing AI-led platforms. Future accounts of them might become queer if they were excluded from this invention.

What are These AI Firms Benefiting From? 

Hard money is needed to set up the necessary infrastructure (strong data centers) to test and deploy new AI models at scale, according to OpenAI and Anthropic. Without the funding, these businesses would be struggling to find ways to monetize their innovations and would likely have few or no revenue streams.

There may be two reasons, however, why these businesses are reluctant to invest in a single company. To begin with, they might eventually become clients of another entity's AI-driven intelligence. Furthermore, there is the significant issue of bragging rights, which pertains to how new technologies have the potential to significantly raise stakeholder values.

Are AI Firms Addressing the Same Issue?

Does this imply that all of these AI startups refer to OpenAI as one that could be unfair and are attempting to address the same issue? Most likely not. Because Anthropic appears to be concentrating on AI models that are more intriguing to businesses looking for long-term business models for growth than they are to people like you and me.

Anthropic asserts that its sweet spot is knowledge work and professional services, whereas OpenAI is releasing new features including the ability to create voice and visuals using their AI models. It's possible that we won't know what its CEO and co-founder Dario Amodei has in mind for a few more weeks or months.

Additionally, the business asserts that while developing AI models, data security, intellectual property, and transparency are of utmost importance. Therefore, it is not interested in writing essays or screenplays about sustainability. Rather, it aims to develop solutions that corporate clients see as game-changers even before they join up.

A War of Proxies to Create the Correct Narrative

Ultimately, the question of where the money is going is raised by this full-fledged proxy war. We've long known that artificial intelligence (AI) models are costly to train and that by the time a business manages to get one down to the point where answering a query costs a dollar, a more potent model might emerge. Anthropic has made it apparent that while OpenAI is free, it would not provide anything at all.  It will take time to see how these models function and how much the Big Tech corporations will invest in them or perhaps develop themselves. Even OpenAI and Anthropic's sophisticated chatbots might not be able to provide satisfactory answers to these queries.