The symbiosis between AI startups and the tech giants is sidelining the venture capitalists that typically back young companies. That new commitment came months after the startup agreed to spend more than $3 billion on Google Cloud. These types of deals have made the tech giants by far the largest backers of these ambitious and costly AI startups. Google Cloud executives have touted the unit’s close relationship with valuable AI startups, betting they will become even bigger customers over time. No one knows whether today’s big AI startups, which all currently lose money, will become enduring businesses.

Source: Wall Street Journal November 03, 2023 14:01 UTC