In November 2022, Google’s Senior Research Director, Douglas Eck, urged a cautious approach to artificial intelligence due to its potential risks. However, the landscape quickly changed with the release of OpenAI’s ChatGPT a few weeks later, prompting Google to adopt a more “bold and responsible” stance in the rapidly evolving field of generative AI.
Caught off guard by the widespread adoption of generative AI, not just by Google but also by other tech giants like Amazon and Meta, there has been a noticeable acceleration in the development and deployment of chatbots and AI tools.
Within Microsoft, OpenAI’s partner and largest investor, the sudden advantage prompted a surge to capitalize on the situation. Speed became a top priority, with Microsoft’s Deputy Chief Technology Officer, Sam Schillace, emphasizing the importance of swift action.
The AI boom has ignited enthusiasm worldwide, transforming industries and leading to a surge in funding for AI startups. However, the tech giants, including Google, Microsoft, Amazon, and Meta, hold key resources that position them to benefit the most from this AI gold rush.
A report from the AI Now Institute highlighted the foundational reliance of AI development on resources controlled by these tech giants, citing advantages in data access, computing power, and geopolitical standing. The report underscored the significant challenges faced by smaller players in competing with the giants.
Despite Microsoft’s backing, OpenAI’s power dynamics came into question, as evidenced by the temporary ousting of CEO Sam Altman. Microsoft’s intervention reinstated Altman, showcasing the influence and support that a giant like Microsoft can exert.
While the giants may still depend on smaller players for certain innovations, their resources, financial strength, and ecosystem reach give them a dominant position in the AI landscape. Deals like Amazon’s investment in AI startup Anthropic further solidify this dominance, allowing the tech giants to maintain a stronghold in the evolving AI landscape, where rewards are expected to predominantly flow to the giants.