Amazon, Google, and Microsoft have spent the past year investing billions of dollars in artificial intelligence startups. For the startups, the deals give them the cash they need to train advanced AI models as well as access to the scarce computing power essential for developing and deploying products such as ChatGPT.
These types of deals have made the tech giants by far the largest backers of these ambitious and costly AI startups. Microsoft, Google and Amazon have poured nearly $20 billion into Anthropic and OpenAI alone, with well over half that amount coming this year. Given that these startups’ biggest cost is on cloud computing, the majority of that cash will likely come back to these investors in the form of cloud revenue.