* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Friday, July 25, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    Black Box Players presents ‘The Three Musketeers’ – CBS 19 News

    Experience the Adventure: Black Box Players Bring ‘The Three Musketeers’ to Life!

    AP Entertainment SummaryBrief at 1:51 p.m. EDT – Channel 3000

    Entertainment Highlights: Key Updates You Can’t Miss

    ‘Devil Wears Prada 2’ casts Anne Hathaway’s love interest replacing Adrian Grenier’s Nate – Entertainment Weekly

    Devil Wears Prada 2′ Casts New Love Interest for Anne Hathaway, Replacing Adrian Grenier’s Nate

    12 ‘Late Show’ Moments Proving Stephen Colbert Can’t Be Replaced – The Mountaineer

    12 Unforgettable ‘Late Show’ Moments That Prove Stephen Colbert Is Truly One of a Kind

    Canes owner Tom Dundon’s real estate firm eyes entertainment complex near RDU – The Business Journals

    Canes Owner Tom Dundon’s Real Estate Firm Unveils Plans for Thrilling New Entertainment Complex Near RDU

    Inspired Entertainment, Inc.’s (NASDAQ:INSE) Price Is Right But Growth Is Lacking After Shares Rocket 29% – simplywall.st

    Inspired Entertainment Soars 29% but Growth Momentum Falls Short

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    WhoFi: New surveillance technology can track people by how they disrupt Wi-Fi signals – Tech Xplore

    WhoFi: New surveillance technology can track people by how they disrupt Wi-Fi signals – Tech Xplore

    Google Cloud Announced as a Key Technology Partner for Odoo Connect 2025 in San Francisco – GlobeNewswire

    Google Cloud Announced as a Key Technology Partner for Odoo Connect 2025 in San Francisco – GlobeNewswire

    Behind the Screens: The Impact of Technology on Real Estate – TRREB

    Behind the Screens: How Technology is Transforming the Future of Real Estate

    Sustainserv and Palau Announce Technology Partnership to Leverage Innovative AI Platform to Advance Sustainability Reporting – Business Wire

    Sustainserv and Palau Team Up to Transform Sustainability Reporting with Breakthrough AI Technology

    Morgan Adamski Joins PwC in Newly Created Cyber, Data & Technology Risk Division – HSToday

    Morgan Adamski Leads the Charge in PwC’s Cutting-Edge Cyber, Data & Technology Risk Division

    Transformative technology, support for food entrepreneurs spotlighted – University of Hawaii System

    How Cutting-Edge Technology and Strong Support Are Revolutionizing Food Entrepreneurs’ Success

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    Black Box Players presents ‘The Three Musketeers’ – CBS 19 News

    Experience the Adventure: Black Box Players Bring ‘The Three Musketeers’ to Life!

    AP Entertainment SummaryBrief at 1:51 p.m. EDT – Channel 3000

    Entertainment Highlights: Key Updates You Can’t Miss

    ‘Devil Wears Prada 2’ casts Anne Hathaway’s love interest replacing Adrian Grenier’s Nate – Entertainment Weekly

    Devil Wears Prada 2′ Casts New Love Interest for Anne Hathaway, Replacing Adrian Grenier’s Nate

    12 ‘Late Show’ Moments Proving Stephen Colbert Can’t Be Replaced – The Mountaineer

    12 Unforgettable ‘Late Show’ Moments That Prove Stephen Colbert Is Truly One of a Kind

    Canes owner Tom Dundon’s real estate firm eyes entertainment complex near RDU – The Business Journals

    Canes Owner Tom Dundon’s Real Estate Firm Unveils Plans for Thrilling New Entertainment Complex Near RDU

    Inspired Entertainment, Inc.’s (NASDAQ:INSE) Price Is Right But Growth Is Lacking After Shares Rocket 29% – simplywall.st

    Inspired Entertainment Soars 29% but Growth Momentum Falls Short

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    WhoFi: New surveillance technology can track people by how they disrupt Wi-Fi signals – Tech Xplore

    WhoFi: New surveillance technology can track people by how they disrupt Wi-Fi signals – Tech Xplore

    Google Cloud Announced as a Key Technology Partner for Odoo Connect 2025 in San Francisco – GlobeNewswire

    Google Cloud Announced as a Key Technology Partner for Odoo Connect 2025 in San Francisco – GlobeNewswire

    Behind the Screens: The Impact of Technology on Real Estate – TRREB

    Behind the Screens: How Technology is Transforming the Future of Real Estate

    Sustainserv and Palau Announce Technology Partnership to Leverage Innovative AI Platform to Advance Sustainability Reporting – Business Wire

    Sustainserv and Palau Team Up to Transform Sustainability Reporting with Breakthrough AI Technology

    Morgan Adamski Joins PwC in Newly Created Cyber, Data & Technology Risk Division – HSToday

    Morgan Adamski Leads the Charge in PwC’s Cutting-Edge Cyber, Data & Technology Risk Division

    Transformative technology, support for food entrepreneurs spotlighted – University of Hawaii System

    How Cutting-Edge Technology and Strong Support Are Revolutionizing Food Entrepreneurs’ Success

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
Earth-News
No Result
View All Result
Home Business

Big tech’s concerning AI industry stranglehold – dominance of Nvidia, other tech giants, raises concerns

June 30, 2023
in Business
Big tech’s concerning AI industry stranglehold – dominance of Nvidia, other tech giants, raises concerns
Share on FacebookShare on Twitter

Parmy Olson highlights the troubling stranglehold that big tech companies have on the artificial intelligence (AI) industry. The high demand for graphics processing units (GPUs), crucial for AI development, has consolidated the power of companies like Nvidia, Microsoft, and Amazon, who control the supply of these expensive and scarce chips. While the cost of accessing AI models has decreased significantly, the price of building AI models has risen due to the shortage and rising prices of GPUs. This creates a two-tiered system, with established tech giants benefiting from their direct access to GPUs and customer bases, while smaller AI companies struggle to compete. However, there is hope that the market will become more competitive in the future as chip shortages ease, alternative technologies emerge, and AI models become more efficient.

Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.

Big Tech Has a Troubling Stranglehold on Artificial Intelligence: Parmy Olson

By Parmy Olson

When OpenAI’s Sam Altman spoke to U.S. senators in May, he made a startling admission. He didn’t really want people to use ChatGPT. “We’d love it if they use it less,” he said. The reason? “We don’t have enough GPUs.”

Altman’s admission underscores a troubling dynamic in the growing generative AI business, where the power of incumbent tech firms is becoming more entrenched thanks to the value and scale of their infrastructure. Rather than create a thriving market for innovative new companies, the boom appears to be helping Big Tech consolidate its power.

GPUs — graphics processing units — are special chips that were originally designed to render graphics in video games, and have since become fundamental to the artificial intelligence arms race. They are expensive, scarce and mostly come from Nvidia Corp., whose market value breached $1 trillion last month because of the surging demand. To build AI models, developers typically buy access to cloud servers from companies like Microsoft Corp. and Amazon.com Inc. — GPUs power those servers.

Read more: PA’s Cilliers on Joburg by-election win, thrashing ANC, sending message to DA

During a gold rush, sell shovels, goes the saying. It’s no surprise that today’s AI infrastructure providers are cashing in. But there’s a big difference between now and the mid-19th century, when the winners of the California Gold Rush were upstarts such as Levi Strauss with his durable miners’ trousers, or Samuel Brennan, who sold enough pans to make himself a millionaire. Today, and for at least the next year or so, most of the profits from selling AI services will go to the likes of Microsoft, Amazon and Nvidia, companies that have dominated the tech space for years already.

Part of the reason is that while the costs of cloud services and chips are going up, the price of accessing AI models is coming down. In September 2022, OpenAI lowered the cost of accessing GPT-3 by a third. Six months later, it made access 10 times cheaper. And in June OpenAI slashed the fee for its embeddings model — which converts words into numbers to help large language models process their context — by 75%. Sam Altman has said the cost of intelligence is “on a path towards near-zero.” 

Meanwhile, the price of building AI models is rising because purchasing a GPU today is like trying to buy toilet paper during the Covid-19 pandemic. Nvidia’s A100 and H100 chips are the gold standard for machine-learning computations, but the price of H100s has climbed to $40,000 or more from less than $35,000 just a few months ago, and a global shortage means Nvidia can’t make the chips fast enough. Many AI startups have found themselves waiting in line behind bigger customers like Microsoft and Oracle to buy these much-needed microprocessors. One Silicon Valley-based startup founder with links to Nvidia told me that even OpenAI was waiting on H100 chips that it won’t receive until spring 2024. An OpenAI spokeswoman said the company doesn’t release that information; but Altman himself has complained about his struggle to get chips.

Read more: Bloomberg Editorial: The Putin problem – what next for the wounded leader?

Big Tech companies have a major advantage over upstarts like OpenAI, thanks to having direct access to those all-important GPUs as well as established customer bases. When Sam Altman traded 49% of OpenAI for Microsoft’s $1 billion investment in 2022, that seemed like a remarkable amount of equity to give up — until you consider that hitching to a major cloud vendor might be the safest way for AI companies to stay in business. 

So far, that bet is paying off for Microsoft. Amy Hood, the company’s chief financial officer, told investors in June that the AI-powered services it was selling, including those powered by OpenAI, would contribute at least $10 billion to its revenue. She called it, “the fastest growing $10 billion business in our history.” That Microsoft product, called Azure OpenAI, is more expensive than OpenAI’s own offering, but allows companies like CarMax and Nota to access GPT-4 in a more enterprise-friendly way, ticking boxes for security and compliance issues, for instance. 

Makers of AI models, meanwhile, face a constant migration of talent between their companies, making it difficult to maintain secrecy and product differentiation. And their costs are never-ending; once they’ve spent the money on cloud credits to train their models, they also have to run those models for their customers, a process known as inference. AWS has estimated that inference accounts for up to 90% of total operational costs for AI models. Most of that money goes to cloud providers.

That sets the stage for a two-tiered system for AI businesses. Those at the top have the money and prestigious connections. Founders graduating from the elite startup accelerator Y Combinator have been offered computing credits worth hundreds of thousands of dollars from cloud vendors like Amazon and Microsoft. A lucky few have managed to hook up with venture capital investor Nat Friedman, who recently spent an estimated $80 million on his own batch of GPUs to set up a bespoke cloud service called the Andromeda Cluster.

Read more: Is it too late to invest in Artificial Intelligence?

AI companies in the second tier will make up a long tail who don’t have these kinds of connections and resources to train their AI systems, no matter how clever their algorithms are.

The glimmer of hope for smaller companies is that Big Tech firms will one day find their products and services becoming commoditized too, forcing them to loosen their stranglehold of the market for building AI. The chip shortage will eventually ease, making GPUs easier to access and cheaper. Competition should also heat up between the cloud providers themselves as they encroach on each other’s territories, for instance with Google developing its own version of the GPU — called a TPU — and Nvidia building up its own cloud business to compete with Microsoft.

And, as researchers develop techniques like LoRAand PEFTto make the process of building AI models more efficient, they’ll need less data and computing power. AI models are now on course to get smaller. That will require less GPUs and infrastructure — and that means Big Tech’s grip won’t last forever.

© 2023 Bloomberg L.P.

Read also – AI is changing the face of investing (for the better?)
Read also – Artificial Intelligence 101 – Stafford Masie’s user’s guide to our very different future
Read also – Discovery Health CEO challenges NHI, begs closed door ANC to open its eyes and ears

(Visited 12 times, 12 visits today)

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : BizNews – https://www.biznews.com/tech/2023/06/30/big-techs-ai-stranglehold-dominance-nvidia-tech-giants-concerns

Tags: businessconcerningtech’s
Previous Post

Capital One’s ‘The Match 8’: Does Mahomes, Kelce or Steph, Klay Have Edge?

Next Post

Obesity drug’s lingering costs as patients struggle to stop – Weight rebound threatens health and finances

WhoFi: New surveillance technology can track people by how they disrupt Wi-Fi signals – Tech Xplore

WhoFi: New surveillance technology can track people by how they disrupt Wi-Fi signals – Tech Xplore

July 25, 2025
Closer look given at construction progress of delayed Laredo sports complex – KGNS

Breaking Down the Latest Developments in the Delayed Laredo Sports Complex Construction

July 25, 2025
Getting into the weeds of plans for the ecological revival of the natural areas at Franklin Park – Dorchester Reporter |

Exploring Bold Plans to Revitalize Franklin Park’s Natural Areas

July 25, 2025

Embattled ‘arsenic life’ paper retracted by journal Science 15 years after publication – Live Science

July 25, 2025
Gary Taubes: MAHA, Ultra-Processed Foods, and Bad Science – Reason Magazine

Gary Taubes Reveals the Shocking Truth About MAHA, Ultra-Processed Foods, and Deceptive Science

July 25, 2025
Behind the Design of Sun Day Red’s Osprey Lifestyle Golf Shoe – Sports Illustrated

Discover the Cutting-Edge Design Behind Sun Day Red’s Osprey Lifestyle Golf Shoe

July 25, 2025
Ether rises 2% and bitcoin inches back above $119,000: CNBC Crypto World – CNBC

Ether Rockets 2% as Bitcoin Rebounds Above $119,000

July 25, 2025
American Airlines forecasts wide range due to economic uncertainty – Reuters

American Airlines Predicts Uncertain Future Amid Economic Challenges

July 25, 2025
Texas Gulf Coast city entertains $816 million, 53-acre development – Chron

Texas Gulf Coast City Launches Thrilling $816 Million, 53-Acre Development Project

July 25, 2025
AdvaMed in Action: Digital Health in the Spotlight at The MedTech Conference 2025 – AdvaMed® – Advanced Medical Technology Association®

Digital Health Revolutionizes The MedTech Conference 2025 Spotlight

July 25, 2025

Categories

Archives

July 2025
MTWTFSS
 123456
78910111213
14151617181920
21222324252627
28293031 
« Jun    
Earth-News.info

The Earth News is an independent English-language daily published Website from all around the World News

Browse by Category

  • Business (20,132)
  • Ecology (738)
  • Economy (761)
  • Entertainment (21,642)
  • General (16,091)
  • Health (9,799)
  • Lifestyle (769)
  • News (22,149)
  • People (763)
  • Politics (770)
  • Science (15,976)
  • Sports (21,259)
  • Technology (15,744)
  • World (744)

Recent News

WhoFi: New surveillance technology can track people by how they disrupt Wi-Fi signals – Tech Xplore

WhoFi: New surveillance technology can track people by how they disrupt Wi-Fi signals – Tech Xplore

July 25, 2025
Closer look given at construction progress of delayed Laredo sports complex – KGNS

Breaking Down the Latest Developments in the Delayed Laredo Sports Complex Construction

July 25, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

Go to mobile version