Large technology companies are investing billions in the development of artificial intelligence. As Bloomberg reports, even AI startups with hundreds of millions of dollars in funding can barely keep up. Companies like Meta, Google, and Microsoft, as well as a few startups like OpenAI, are spending huge sums on computing power, training data, and talent.
The situation is reminiscent of the competition among ride-sharing apps a decade ago. Back then, Uber and Lyft, which have received billions in venture capital, came out on top. AI development is even more expensive: according to Anthropic CEO Dario Amodei, the cost of training AI models could rise to $5 billion to $10 billion by 2026. Many startups are unable to keep up and are reorienting themselves. Aleph Alpha CEO Jonas Andrulis, for example, says that a European language model alone no longer justifies the investment.