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TechCheck+ Megacaps’ Mega Deals: How big tech could be using AI investments to bankroll themselves 11/17/23

TechCheck

CNBC

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

4.566 Ratings

🗓️ 17 November 2023

⏱️ 8 minutes

🧾️ Download transcript

Summary

Big tech names like Microsoft, Google and Amazon have poured billions into the biggest names in the AI startup world, effectively replacing what used to be the role of high-profile, highly capitalized tech investors like Tiger Global and Softbank. And in some cases, through exclusive cloud contracts, those investments in startups come right back in the form of cloud revenue. This week on TechCheck, we dig into the megacaps’ mega deals, and how big tech could be using AI investments to bankroll themselves.

Transcript

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0:00.0

billion dollar checks a new multi-billion dollar investment giant valuation 80 to 90

0:08.2

billion dollar evaluation and yet to turn a profit it's the age of generative AI and there's a new big stack in town.

0:16.4

Microsoft just made another multi-billion dollar bet on chat cheaply.

0:19.7

Amazon making a bet on generative AI, the company confirming it plans to invest up to

0:24.3

four billion dollars in ananthropic Google will invest up to two billion dollars in the

0:28.7

open AI rival andthropic this week Check, Mega Caps, new mega deals. How Microsoft, Google,

0:36.3

and Amazon are using their cashwords to disrupt tech investing and possibly even

0:41.1

bankroll themselves.

0:45.0

A looming question for investors trying to play the generative AI race,

0:49.0

will the incumbent mega-caps like Microsoft, Google, and Amazon,

0:52.0

will they come out on top or will they be

0:53.8

surpassed by startups like chatbot creators, open AI and anthropic? The answer

0:58.7

that's emerged over the past year, they're one and the same and that's because big tech with their money printing cloud

1:04.4

units have been staking its claim on both ends of the generative AI race.

1:09.3

Really the people that invest in these companies are mostly the cloud vendors

1:14.2

they have incentives to do that. Microsoft Google and Amazon they are the cloud

1:18.1

giants the so-called hyperscalers they provide compute power they invest in AI chips and hardware, and they have also created their own AI services.

1:26.3

Today Microsoft starts selling its most important new product in years, the AI assistant called

1:32.2

Co-Pilot.

1:33.0

But they've also poured billions of dollars into the biggest names in the AI startup world,

1:37.0

effectively replacing what used to be the role of high-profile, highly capitalized tech investors like a Tiger Global or Soft Bank.

1:45.6

Take Microsoft.

...

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