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Big Tech Adopts New Tactics to Dominate the AI Landscape

Strategic Acquisitions and Licensing Shape the Future of AI.

Microsoft and Amazon Uses Advanced AI To Automate Workflows

In an innovative shift from conventional acquisition strategies, major technology firms are now embracing a blend of acquihires and licensing to cement their position in the burgeoning artificial intelligence (AI) sector. This trend was highlighted in recent maneuvers by Microsoft and Amazon, as reported by The Verge.

Microsoft hired Inflection

A few months back, Microsoft’s strategic hiring of the Inflection team was notable. Inflection, a rising competitor to OpenAI, saw its key personnel and technologies absorbed by Microsoft, avoiding typical mergatical acquisitions and sidestepping possible antitrust scrutiny. Reid Hoffman, co-founder of Inflection and Microsoft board member, shed light on this during a tech conference in San Francisco, suggesting that these patterns of deals might set a precedent for future AI-related acquisitions.

Amazon hired Adept

Following suit, Amazon recently announced that it would hire 80 percent of the employees from Adept, another AI start-up poised as a major player in the field that aimed to translate natural language into actionable tasks. Amazon’s senior vice president, Rohit Prasad, revealed that the company will also license Adept's technologies to enhance its capability in automating software workflows, a move similar to Microsoft's.

Relevance of AI Industry

The Verge report underscores a broader trend where the escalating costs of developing competitive AI technologies are pushing many AI startups towards such deals. These strategic hires and licenses allow Big Tech to integrate advanced AI capabilities without the complexities and potential pushbacks of outright acquisitions. As the AI industry continues its consolidation, startups strapped for capital find these arrangements a viable alternative to maintain their developmental momentum.

Moreover, the restrictions posed by current antitrust laws, which increasingly prevent large-scale acquisitions, are another impetus for Big Tech to pursue such approaches. This ensures continual innovation within their ecosystems without facing legal roadblocks.


These developments, representative of a strategic pivot in Big Tech's approach to industry dominance, illustrate a pragmatic adaptation to both regulatory landscapes and the intrinsic nature of the fast-evolving AI domain.

This strategic shift not only maximizes resource efficiency but also ensures Big Tech firms remain pivotal players in harnessing and shaping the potential of AI technologies, ultimately influencing the broader technological trajectory.


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