Amazon, Google, and Microsoft are three of the biggest players in the tech industry, and they are constantly looking for new ways to stay ahead of the competition. One way they are doing this is by acquiring artificial-intelligence (AI) firms. However, instead of just buying these companies outright, they are now using a new type of deal that allows them to invest in these companies while still giving them the freedom to operate independently.
This new type of deal, known as a strategic investment, allows Amazon, Google, and Microsoft to acquire a minority stake in an AI firm without taking over the entire company. This gives the AI firm access to the resources and expertise of these tech giants, while still allowing them to maintain their own identity and culture.
One example of this type of deal is Google’s investment in DeepMind, a London-based AI company that specializes in deep learning algorithms. Google acquired DeepMind in 2014 for a reported $500 million, but allowed the company to continue operating independently. This has allowed DeepMind to continue pushing the boundaries of AI research, while also benefiting from Google’s vast resources and expertise.
Amazon has also made strategic investments in AI firms, such as its acquisition of Kiva Systems, a robotics company that specializes in warehouse automation. By investing in Kiva Systems, Amazon was able to improve its own logistics operations while also allowing Kiva to continue operating independently.
Microsoft has also made strategic investments in AI firms, such as its acquisition of Maluuba, a Montreal-based AI company that specializes in natural language processing. By investing in Maluuba, Microsoft was able to strengthen its own AI capabilities while also allowing Maluuba to continue developing cutting-edge AI technology.
Overall, these strategic investments in AI firms allow Amazon, Google, and Microsoft to stay at the forefront of the AI industry while also fostering innovation and collaboration within the tech community. By giving these AI firms the resources and expertise they need to succeed, these tech giants are ensuring that they remain leaders in the ever-evolving world of artificial intelligence.