Big Tech Outspends Venture Capital Firms in AI Investment Frenzy

Big tech companies have vastly outspent venture capital groups with investments in generative AI start ups this year, as established giants use their financial muscle to dominate the much-hyped sector. From a report: Microsoft, Google and Amazon last year struck a series of blockbuster deals, amounting to two-thirds of the $27bn raised by fledgling AI companies in 2023, according to new data from private market researchers PitchBook. The huge outlay, which exploded after the launch of OpenAI's ChatGPT in November 2022, highlights how the biggest Silicon Valley groups are crowding out traditional tech investors for the biggest deals in the industry. The rise of generative AI -- systems capable of producing humanlike video, text, image and audio in seconds -- have also attracted top Silicon Valley investors. But VCs have been outmatched, having been forced to slow down their spending as they adjust to higher interest rates and falling valuations for their portfolio companies.

Read more of this story at Slashdot.