Silicon Valley's big hitters are battling it out to dominate the generative artificial intelligence market. As generative AI's potential continues to unfold, companies like Google, Microsoft, and Amazon are making strategic moves to stay ahead, from investing in AI capabilities to developing powerful microprocessors.
AI is the key to business survival
The Silicon Valley heavyweights are currently embroiled in a fierce competition to assert their dominance in the generative artificial intelligence market. No matter what they sell - whether smartphones, ads, or computer chips - these companies recognize that AI is crucial to their survival. As independent industry analyst Jack Gold puts it, "If you're a company, and you don't have an AI message, you're not going to be in business very long." Indeed, everyone is focused on AI, and the race is on to outmarket, out-hype, and outperform everyone else.
Cloud-based deployment for generative AI
The cloud is the platform of choice for deploying most generative AI systems. These systems are incredibly advanced, capable of delivering content as complex as a poem or scholarly essay in just seconds. The advent of generative AI, based on large language models, is likened by many to be an earth-shaking change similar to the birth of the internet age. To support these advanced AI systems, tech giants like Microsoft, Google, and Meta have trained their own models. Moreover, cloud services companies, spearheaded by Microsoft's Azure, Amazon Web Services, and Google Cloud, are beginning to monetize AI, though the costs at the moment are still high.
Microprocessors: The cost driver of AI
While the excitement for generative AI is palpable, it's important to note that it comes with a hefty price tag. The main cost comes from the microprocessors needed to process the massive amounts of data these AI systems require. Nvidia, a chipmaker, struck gold by investing in the development of graphics processing units (GPUs) years ago, which are now a crucial pillar in the rapid development of generative AI. Simultaneously, Intel, another major player in the chipmaking industry, is working hard to catch up with its rivals in terms of powerful chips needed for AI processing.
Amazon and Apple are not left behind in the AI race. Amazon has plans to invest up to $4 billion in Anthropic, a rival to OpenAI, and is emphasizing the importance of Bedrock, its service for building generative AI applications. Similarly, Apple, traditionally known for setting its own agenda, is also acknowledging the importance of AI. Apple Chief Tim Cook hinted at their work in generative AI, stating that they are investing a significant amount in this technology. Observers are eagerly expecting substantial improvements in Apple's digital assistant, Siri, which hasn't seen much evolution recently.
