Google, Microsoft invest in AI startups as battle for dominance heats up

admin June 1, 2023

0 1 minute read

As the battle for market share in AI heats up, Google and Microsoft are vying for dominance and making new strategic startup investments.

Google invests in Runway

information report On June 1st, it was announced that Google has invested in AI startup Runway, a highly regarded text-to-video conversion tool, as part of a $100 million funding round.

The investment will boost Runway’s valuation to $1.5 billion and is expected to facilitate a massive migration from Amazon Web Services (AWS) to Google’s cloud servers.

Earlier this year, Google also poured $400 million into OpenAI rival Anthropic, signing deals with Midjourney and Character AI to further strengthen its investment strategy.

Google’s strong backing of these AI startups, including Runway’s text-to-video tools, Midjourney’s text-to-image technology, and Character AI’s chatbot capabilities, will support and scale the burgeoning AI technology. Emphasizes the intentions of the tech giant.

Such a strategic investment is a good reflection of the technology industry’s broader focus on AI, following Microsoft’s investment in OpenAI.

Microsoft invests in CoreWeave

Microsoft is also actively investing in the AI field in cooperation with CNBC. report It could be a multi-billion dollar deal with Nvidia-backed startup CoreWeave.

CoreWeave provides simplified access to Nvidia’s graphics processing units (GPUs), widely known as the best on the market for running AI models. The deal reinforces Microsoft’s efforts to meet the exponential demand for AI-powered services while also putting it in a position to compete with Google.

This investment in CoreWeave comes on the heels of the startup raising $200 million and reaching a $2 billion valuation.

Founded in 2017, CoreWeave has grown rapidly, doubling its revenue from 2022 to 2023. With the surge in demand for generative AI, Microsoft’s acquisition of additional access to his Nvidia GPUs through CoreWeave marks a strategic response to the escalating AI rush.

Both Google’s and Microsoft’s strategies, while distinct in their approach, share a common goal of harnessing the transformative potential of AI, fueled by the market’s frenetic enthusiasm for AI technology.