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Why the fear of missing out is driving AI investments

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Tech behemoths are not only flexing their financial muscles but also exhibiting a palpable fear of missing out as they race to seize stakes in the generative AI landscape.

In a regulatory environment that has dampened traditional acquisition strategies, companies like Amazon, Microsoft, and Alphabet are funneling billions into startups at a dizzying pace.

The latest headline-grabbing move came from Amazon, which announced a staggering $2.75 billion investment in Anthropic, an AI startup specialising in generative models.

This investment marks Amazon’s largest venture deal to date and underscores the escalating fervor in the AI gold rush.

At the heart of this frenzy lies a competitive scramble among tech giants to integrate generative AI into their product ecosystems.

With the market projected to exceed $1 billion in revenue within a decade, companies like Meta, Apple, and Google are sparing no expense to ensure they remain at the vanguard of innovation.

Generative AI deals

In 2023 alone, investors injected a staggering $29.1 billion into nearly 700 generative AI deals, representing a remarkable 260% increase in value from the previous year, according to PitchBook data.

Notably, a substantial portion of these funds emanated from tech titans themselves, highlighting their fervent quest to stay ahead in the AI arms race.

Fred Havemeyer, head of U.S. AI and software research at Macquarie, underscores the role of FOMO in driving these investment decisions. “They definitely don’t want to miss out on being part of the AI ecosystem,” says Havemeyer. “I definitely think that there’s FOMO in this marketplace.”

Specialised chips

Fueling this investment spree is the exorbitant cost of developing and training AI models, a process that demands thousands of specialised chips, predominantly sourced from Nvidia. Meta, for instance, has disclosed pouring billions into Nvidia’s graphics processing units to bolster its proprietary AI model, Llama.

The investment landscape also reveals a symbiotic relationship between tech giants and AI startups. Companies like Nvidia, Microsoft, Google, and Amazon are not only investing financially but also extending infrastructural support, offering cloud credits, and facilitating partnerships to bolster the AI ecosystem.

In the case of Amazon’s alliance with Anthropic, the collaboration extends beyond mere investment. Anthropic will leverage Amazon Web Services for its computing needs and utilise Amazon’s chips, while Amazon gains access to Anthropic’s cutting-edge AI models, which will be distributed to AWS customers.

Ahron Young is an award winning journalist who has covered major news events around the world. Ahron is the Managing Editor and Founder of TICKER NEWS.

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Tesla is slashing prices to stay competitive

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Tesla cut the U.S. prices of its Model Y, Model X and Model S vehicles by $2,000 each, days after the first-quarter deliveries of the world’s most valuable automaker missed market expectations.

Elon Musk’s electric-vehicle (EV) maker lowered the prices for its Model Y base variant to $42,990, while the long-range and performance variants are now priced at $47,990 and $51,490, respectively, according to its website.

The basic version of the Model S now costs $72,990 and its plaid variant $87,990. The Model X base variant now costs $77,990 and its plaid variant is priced at $92,900.
Tesla North America also said in a post on X said it would end its referral program benefits in all markets after April 30.

Referral program allows buyers to get extra incentives through referrals from existing customers, a strategy long used by traditional automakers to boost sales.

Musk has postponed a planned trip to India where he was to meet Prime Minister Narendra Modi and announce plans to enter the South Asian market, Reuters reported on Saturday.
On Monday Reuters reported, citing an internal memo, that the EV maker was laying off more than 10% of its global workforce.
Earlier this month Reuters reported the EV maker had canceled a long-promised inexpensive car, expected to cost $25,000, that investors had been counting on to drive mass-market growth.
The EV maker reported this month that its global vehicle deliveries in the first quarter fell for the first time in nearly four years, as price cuts failed to stir demand.

Tesla is to report first-quarter earnings on Tuesday.

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TikTok launches Instagram competitor ‘Notes’

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TikTok Notes has launched in Australia & Canada as a formidable competitor to Instagram, offering a unique platform for content creation, text and sharing.

“TikTok Notes is a lifestyle platform that offers informative photo-text content about people’s lives, where you can see individuals sharing their travel tips and daily recipes,” reads the official App Store description.

Take note

The app allows users to create content by combining short videos with text-based notes, closely resembling that of Meta’s Instagram.

Whether it’s sharing a quick tutorial, a personal anecdote, or a thought-provoking message, TikTok Notes is positioned to be a formidable social media platform.

Currently, the app is only available for download and “limited testing” in Australia and Canada.

As it gains momentum, the platform is poised to contest Instagram’s established reign in the social media landscape.

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Ramifications of a TikTok ban to impact Open Internet

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The United States’ longstanding advocacy for an open internet faces a critical juncture as Congress considers legislation targeting TikTok.

The proposed measures, including a forced sale or outright ban of TikTok, have sparked concerns among digital rights advocates and global observers about the implications for internet freedom and international norms.

For decades, the U.S. has championed the concept of an unregulated internet, advocating for the free flow of digital data across borders.

However, the move against TikTok, a platform with 170 million U.S. users, has raised questions about the consistency of America’s stance on internet governance.

Read more – Big tech to handover misinformation data

Critics fear that actions against TikTok could set a precedent for other countries to justify their own internet censorship measures.

Russian blogger Aleksandr Gorbunov warned that Russia could use the U.S. decision to justify further restrictions on platforms like YouTube.

Similarly, Indian lawyer Mishi Choudhary expressed concerns that a U.S. ban on TikTok would embolden the Indian government to impose additional crackdowns on internet freedoms.

Moreover, the proposed legislation could complicate U.S. efforts to advocate for an internet governed by international organizations rather than individual countries.

China, in particular, has promoted a vision of internet sovereignty, advocating for greater national control over online content.

A TikTok ban could undermine America’s credibility in urging other countries to embrace a more open internet governed by global standards.

 

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