BIG TECH IS SPENDING MORE THAN VC FIRMS ON AI STARTUPS

Summary from the TLDR newsletter

Big Tech companies have vastly outspent venture capital firms with generative AI startup investments this year. Microsoft, Google, and Amazon are responsible for two-thirds of the $27 billion raised by AI startups in 2023. Building and training generative AI tools is expensive and requires immense computing power, so startups have preferred to partner with Big Tech companies that can provide infrastructure and funds. This has rapidly pushed up the valuations of private startups, making it harder for VCs to invest in the most cutting-edge companies.