US tech giants 'already at helm of GenAI supertanker'

UK hopes of being a world leader in generative artificial intelligence seem to be nothing but a pipedream after new figures show the market has already exceeded the $66bn mark, with Microsoft-backed Open AI and Meta AI solidifying their tech dominance by capturing 56% of the market.

Earlier this month, the House of Lords Communications & Digital Committee warned that the Government’s obsession with the “AI apocalypse” could see the UK miss out on the tech goldrush and, much like the Internet revolution before it, pave the way for overseas tech giants to dominate the market, leaving British firms out in the cold.

But it seems the ship has already left the harbour, with nearly every US tech giant, from Microsoft and Google to Amazon and Meta, already sailing into the sunset aboard the GenAI supertanker.

And, according to figures from Stocklytics.com, the GenAI market is expected to be worth nearly $207bn by 2030, growing at a compound annual rate of 20.8%.

Microsoft is a case in point. The tech giant has made considerable inputs to Open AI’s ChatGPT development and controls nearly 50% of the company’s shares.

As a result, its involvement has boosted Microsoft product sales, with the unveiling of the new Copilot Feature, Microsoft Dynamics 365, has also boosted Word and Excel packages.

Microsoft has also jumped into bed with Meta for the release of Llama 2, an open-source large language model that it is claimed offers a broader range of functions than ChatGPT and performs better. This is especially true in specialized applications such as customer support or educational institutions.

Ultimately, Microsoft has strategically positioned itself in the middle of the two dominant AIs, putting itself in an excellent position for future AI developments.

At the end of 2023, Microsoft hit the $3trillion mark, with analysts citing the GenAI partnerships as a significant contributor.

Google kicked off its AI involvement with the launch of Bard AI, its generative AI model. Slowly, the company began offering more features like Duet, which enables users to use Gen Ai through its Google Workspace. The tech giant has also signed partnerships with Anthropic.

Amazon joined the tech gang AI movement with its recent partnership with Alphabet-backed Anthropic in late 2023. Anthropic will now use Amazon Web Services (AWS) as its primary cloud provider. Anthropic will also use Amazon’s chips to train future generative AI models. Besides, Anthropic is projecting $850m in annualised revenue by the end of 2024.

The Stocklytics.com report concludes: “Generative AI is the new goldmine for tech giants, with start-ups mushrooming every second. With over 550 generative techs in the market, further expansion is inevitable, as collaborations loom on the horizon.”

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