g-f(2)1988 Tech Giants’ Dominance in AI: A Result of Surging Computing Costs

 

genioux Fact post by Fernando Machuca and Bing Chatbot (Copilot)

Introduction:

The article "Google, Microsoft Will Dominate AI as Computing Costs Surge" provides an insightful look into the increasing costs of AI infrastructure and its impact on the industry. It highlights the challenges faced by startups and the dominance of tech giants in the AI sector.

genioux GK Nugget:

"The prohibitive cost of AI infrastructure is leading to a consolidation of power in the hands of tech giants like Google and Microsoft, making it increasingly difficult for startups to compete." — Fernando Machuca and Bing Chatbot (Copilot)

genioux Foundational Fact:

The article discusses the high costs of AI infrastructure, which has led to a concentration of power in the hands of a few tech giants. Despite the influx of new startups in the generative AI market, many are likely to fold or be absorbed by the incumbents due to the high costs of doing business. The prime beneficiaries of this trend are cloud-computing giants Microsoft, Amazon, Alphabet Inc.'s Google, and AI chip maker Nvidia Corp.

10 genioux Facts:

1. Sam Altman aims to raise about $7 trillion to manufacture AI chips.

2. The infrastructure required to build AI has become prohibitively expensive.

3. A majority of the value in the AI sector is held by a few large technology companies.

4. Many new players in the generative AI market are likely to fold or be absorbed by the incumbents due to high costs.

5. Unitary, a company that scans videos on social media for rule-breaking content, finds it would cost 100 times more than it charges clients to subscribe to OpenAI's video-scanning AI tools.

6. Unitary creates its own models, which is a challenging task.

7. Unitary needs to rent access to rare AI chips via cloud vendors like Microsoft Corp. and Amazon.com Inc.'s Amazon Web Services.

8. These AI chips have doubled in price since 2020 and are difficult to reserve.

9. Generative AI startups can build their technology in two different ways: develop their own version of OpenAI's GPT-4 or Google's Gemini, or build on top of an existing model.

10. In both cases, the prime beneficiaries are cloud-computing giants Microsoft, Amazon, Alphabet Inc.'s Google, and AI chip maker Nvidia Corp.

Conclusion:

The surge in computing costs is reshaping the AI landscape, with tech giants like Google and Microsoft poised to dominate. This trend poses significant challenges for startups and could potentially stifle innovation in the sector. However, it also underscores the immense potential and value of AI, highlighting the need for strategic investments and partnerships in this space.

REFERENCE

The g-f GK Article

Parmy Olson, Google, Microsoft Will Dominate AI as Computing Costs Surge, Bloomberg, February 19, 2024.

Parmy Olson

Parmy Olson is a Bloomberg Opinion columnist who covers technology¹²³. She is a former reporter for the Wall Street Journal and Forbes, and is the author of “We Are Anonymous”¹²³. Olson's work focuses on various aspects of technology, including the impact of AI on society, the role of tech giants in the AI industry, and the ethical implications of emerging technologies¹. Her articles provide insightful commentary on topics such as Google's AI model Gemini, the potential risks of Neuralink's Telepathy device, and the influence of celebrities like Taylor Swift on AI legislation¹..

Source: Conversation with Bing, 2/19/2024

(1) Parmy Olson - Bloomberg. https://www.bloomberg.com/opinion/authors/AVYbUyZve-8/parmy-olson.

(2) Google’s Gemini Looks Remarkable, But It’s Still Behind OpenAI. https://www.bloomberg.com/opinion/articles/2023-12-07/google-s-gemini-ai-model-looks-remarkable-but-it-s-still-behind-openai-s-gpt-4.

(3) Elon, Please Keep the Internet Out of Our Brains - Bloomberg.com. https://www.bloomberg.com/opinion/articles/2024-01-30/elon-musk-s-neuralink-telepathy-implant-will-connect-brains-to-the-internet.

(4) imdb.com. https://www.imdb.com/name/nm5110089/.

Copilot's Summary:

The article "Google, Microsoft Will Dominate AI as Computing Costs Surge" discusses the increasing costs of AI infrastructure and its impact on the industry⁴⁵⁶. 

Sam Altman's ambitious goal of raising about $7 trillion to manufacture AI chips highlights two key points. Firstly, the infrastructure required to build AI has become prohibitively expensive⁴⁵⁶. Secondly, a majority of the value in this sector is still held by a few large technology companies, and this oligopoly is expected to intensify⁴⁵⁶.

Despite the competition spurred by the launch of ChatGPT in late 2022 and the influx of new startups in the generative AI market, many of these new players are likely to fold or be absorbed by the incumbents in the next year or so due to the high costs of doing business⁴⁵⁶.

For instance, Sasha Haco, the CEO of Unitary, which scans videos on social media for rule-breaking content, stated that it would cost her company 100 times more than it charges clients to subscribe to OpenAI's video-scanning AI tools⁴⁵⁶. Therefore, Unitary creates its own models, which is a challenging task in itself⁴⁵⁶.

The company needs to rent access to rare AI chips via cloud vendors like Microsoft Corp. and Amazon.com Inc.'s Amazon Web Services⁴⁵⁶. These chips have doubled in price since 2020 and are difficult to reserve⁴⁵⁶.

Ronald Ashri, CEO of startup Dialogue.ai, likens the situation to electricity, where you're plugged into a foundation model and consuming it constantly⁴⁵⁶. The consumption is the single highest cost in the solution that they deliver to clients⁴⁵⁶.

Generative AI startups can build their technology in two different ways. They can develop their own version of OpenAI's GPT-4 or Google's Gemini, a so-called foundation model that requires hundreds of millions of dollars in investment⁴⁵⁶. Or they can build on top of an existing model, which only needs tens of millions in investment and which the vast majority of AI startups do today⁴⁵⁶.

In both cases, the prime beneficiaries are cloud-computing giants Microsoft, Amazon, and Alphabet Inc.'s Google, and AI chip maker Nvidia Corp⁴⁵⁶.

Source: Conversation with Bing, 2/19/2024

(1) Google, Microsoft Will Dominate AI as Computing Costs Surge. https://tech.hindustantimes.com/tech/news/google-microsoft-will-dominate-ai-as-computing-costs-surge-71708369964389.html.

(2) Google, Microsoft, Nvidia will dominate AI as computing costs surge. https://www.moneycontrol.com/news/opinion/google-microsoft-nvidia-will-dominate-ai-as-computing-costs-surge-12303041.html.

(3) Opinion: Google, Microsoft will dominate AI as computing costs surge. https://www.ourmidland.com/opinion/voices/article/opinion-google-microsoft-dominate-artificial-18676153.php.

(4) Encyclopedia - Wikipedia. https://en.wikipedia.org/wiki/Encyclopedia.

(5) Hawaii - Wikipedia. https://en.wikipedia.org/wiki/Hawaii.

(6) Rosalind Franklin - Wikipedia. https://en.wikipedia.org/wiki/Rosalind_Franklin.

(7) Google, Microsoft will dominate AI as computing costs surge. https://inshorts.com/en/news/google-microsoft-will-dominate-ai-as-computing-costs-surge-1708350393941.

The categorization and citation of the genioux Fact post

Categorization

This genioux Fact post is classified as Breaking Knowledge which means: Insights for comprehending the forces molding our world and making sense of news and trends.

Type: Breaking Knowledge, Free Speech

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References

“genioux facts”: The online program on "MASTERING THE BIG PICTURE OF THE DIGITAL AGE”, g-f(2)1988, Fernando Machuca and Bing Chatbot (Copilot), February 19, 2024, Genioux.com Corporation.

 

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