Finance Knuggets
Jan 07, 2024
I recently learned about the intense competition to fund AI companies, with reports of OpenAI and Anthropic raising new funding at incredibly high valuations. In 2023, Microsoft, Google, and Amazon invested over $18 billion in just three companies, making up two-thirds of global venture investment into generative AI startups. It’s clear that Big Tech companies are eager to be at the forefront of the generative AI industry, as missing out on new technology waves can have significant consequences.
Amazon Web Services held its first accelerator program last summer for generative AI, with 21 startups participating. AWS has also provided $6 billion in technology services credits to over 280,000 startups through its Activate program in the past decade. Howard Wright, AWS’ global head of startups, mentioned that the company has unannounced partners working on their custom silicon and emphasized their focus on providing top-notch engineering tools and credits to their startup ecosystem.
Overall, the news highlighted the fierce competition and substantial investments in the AI sector, with Big Tech companies and traditional venture firms aggressively investing in AI startups. This race to fund AI companies is a significant development in the technology and investment landscape, with potential implications for the future of AI and its applications in various industries.
