Google, Microsoft, OpenAI Square Up on Generative AI

When a new disruption emerges, big-name players race to master it. This is happening right now as Amazon, Google, Microsoft and OpenAI are actively investing in generative AI. It’s a high-stakes race where the winner takes all as the ultimate provider of all things AI. However, how realistic is this goal?

 Race for Generative AI Supremacy

There are several key indicators of big tech companies going for an AI monopoly:

Having invested $13 billion in OpenAI, Microsoft now considers the company its competitor. The growing competitive tension was marked by removing the OpenAI CEO without briefing the Microsoft CEO and Microsoft gave up its observer seat on the OpenAI board.

Big tech companies keep gravitating from partnerships with OpenAI and Athropic to developing their products. After acquiring Inflection AI, Microsoft poured $650 million into its MAI-1 model. Similarly, Amazon is now creating its own AI platform.

Following the hyper-intense hunt for AI talent, Google entered a fierce standoff with OpenAI as both aggressively hired each other’s experts. Microsoft has also been particularly active, constantly supporting prominent AI startups to absorb them into working on its AI systems.

Related:Address Bias in Generative AI to Unlock Benefits While Minimizing Risk

Is a Generative AI Monopoly Possible?

Although business titans believe generative AI can bring them infinite growth, their optimism is challenged by the factors surfacing along with ongoing AI adoption.

Estimating that big tech companies will spend around $60 billion on AI by 2026 and get only $20 billion in return, Wall Street analysts now wonder whether such expenses are worth the effort. Google’s unimpressive profit margins amidst surging capital expenditures fueled this doubt further.

Although Google’s CEO claims that overinvesting in AI is better than underinvesting and that all they need is more time, estimations say that the tech sector would need to generate around $600 billion in revenue to stay afloat. Given that investors are already hesitating, the question of whether the companies will be able to reach that bar with no plan B in sight remains open.

In 2021, Google and Amazon lost up to 18% of weighted confidence, with 20% of distrustful users belonging to groups born in the big tech era. The monopolization of innovation is one of many reasons for such distrust. So, the idea of corporations monopolizing AI makes people concerned about potential data privacy violations and business practices.

Related:Automation Before AI

Big Tech AI Showdown

The same analysts who are skeptical about the race for generative AI supremacy admit that the technology can have a powerful and positive impact.

However, at the end of the day, the customers determine the winner—and they want to be respected and seen. So, if the product isn’t helpful to people, no amount of money or accumulated talent will be enough to succeed.

Therefore, the company that slows down and prioritizes user convenience over controlling innovation is likely to win the race.