Start-ups Seek Assistance from Larger Companies to Develop A.I. Technology

Start-ups in the field of artificial intelligence (AI) are increasingly relying on bigger rivals like Google, Microsoft, and Amazon for the computing power needed to develop their own AI systems. The industry's giants control the vast data centers required to run AI systems, putting them in a dominant position. Start-ups like Cohere, Anthropic, Character.AI, and Inflection AI have secured funding to purchase computing power from these tech giants. OpenAI, the company behind ChatGPT, recently raised $10 billion from Microsoft and will use the funds to pay for time on Microsoft's massive clusters of computer servers. While the tech giants have an advantage due to their vast resources, the open-source software could level the playing field by allowing anyone to compete, although access to larger competitors' data centers would still be necessary.