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TechCheck

AI Competition Heating Up 5/21/24

TechCheck

CNBC

Management, Cnbc, Tech, Faang, Investing, Business, Disruptors, Technology

4.566 Ratings

🗓️ 21 May 2024

⏱️ 11 minutes

🧾️ Download transcript

Summary

CNBC’s Deirdre Bosa discusses the latest news on monetizations towards AI features and China’s AI competition. Plus, Brent Thill, software and internet research analyst at Jeffries, shares his reaction to Microsoft’s developer conference, the company’s approach to AI, and more.

Transcript

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0:00.0

After two weeks of AI announcements from Alphabet, Open AI, and now Microsoft, one thing is becoming clear.

0:05.8

Competition is fiercer than ever. The monetization picture, though, still unclear, and that is the topic of today's

0:11.7

Tech Check with Deirdre Bosa.

0:13.3

Morning, D.

0:14.3

Hey, good morning Carl.

0:15.4

So Gen AI companies were only seeing them just beginning to price their products.

0:20.4

This potential of a price word that could shake confidence in their ability to monetize billions of dollars in investments,

0:26.0

but that is actually what we're seeing in China.

0:28.0

Over the last few weeks, its largest tech companies have kicked off a race to the bottom in Gen AI. It started with

0:33.6

TikTok parent bite dance. It introduced a chatbot that costs less than

0:37.9

most competitors and quickly jumped to the top of download charts. Then

0:41.7

Alibaba answered back by slashing the fee for its

0:44.1

Gen AI models by up to 97%. Hours later Baidu said it would offer free

0:49.1

services based on its Ernie AI models. And we aren't seeing that kind of Gen AI price war

0:54.4

here in America, but there are signs

0:56.4

that the competition is heating up price-wise.

0:59.3

When Open AI launched GPT for a last week,

1:02.1

it gave non-paying users faster speeds more features

1:05.4

Sam Altman in a blog post writing a key part of our mission is to put very

1:09.1

capable AI tools in the hands of people for free or at a great price. Essentially he said

1:14.7

that they will find plenty of things to charge for putting scale ahead of

1:19.2

profitability. Now a day later Google rolled out its AI overviews. This is a slim down version of its

...

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