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Google, Microsoft invest in AI startups as battle for dominance intensifies

In the escalating battle for market share in the AI ​​sector, Google and Microsoft have made new strategic startup investments as they vie for dominance.

Google invests in Runway

Information It was reported on June 1 that Google had invested in AI startup Runway, acclaimed for its text-to-video tool, as part of a $100 million funding round.

The investment has raised Runway’s valuation to $1.5 billion and is expected to start a major transition from Amazon Web Services (AWS) to Google’s cloud servers.

Earlier this year, Google pumped $400 million into OpenAI rival Anthropic and signed deals with Midjourney and Character AI, further bolstering its investment strategy.

Google’s strong support of these AI startups, including Runway’s text-to-video tool, Midjourney’s text-to-image technology and Character AI’s chatbot capabilities, shows the tech giant’s intent to support and expand the rapidly growing AI technology. underlines.

Such strategic investments closely mirror the tech industry’s broader focus on AI, following Microsoft’s investment in OpenAI.

Microsoft invests in CoreWeave

Microsoft is also actively investing in the AI ​​sector, with CNBC reporting a possible multi-billion dollar deal with CoreWeave, a startup backed by Nvidia.

CoreWeave provides simple access to Nvidia’s graphics processing units (GPUs), widely regarded as the best in the market for running AI models. The agreement will bolster Microsoft’s efforts to meet the exponential demand for AI-powered services, as well as position itself to compete with Google.

This CoreWeave investment comes on the heels of the startup raising $200 million in funding and achieving a $2 billion valuation.

CoreWeave was founded in 2017 and has a rapid growth in its revenue from 2022 to 2023. With demand for generative AI rising, Microsoft’s acquisition of additional access to Nvidia’s GPUs through CoreWeave demonstrates a strategic response to the growing AI rush.

The strategies of both Google and Microsoft, while unique in their approach, share a common goal of harnessing the transformative potential of AI, fueled by the market’s enthusiasm for the technology.

Posted in: AI, Featured, Investing Author Jacob Oliver Editor at CryptoSlate

Jacob Oliver is a recovering academic and English teacher who went down the crypto rabbit hole in 2017 after recognizing the potential of the technology.

Editor Zaim Shoaib Zuberi Editor at Crypto Slate

Influenced by business, finance, DeFi and crypto editor Zaim holds a degree in business and finance. His 14-year career in financial journalism spans sectors such as banking, finance, insurance and technology.

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