"This frenzy appeared to catch off guard even the tech companies that have invested billions of dollars in AI—and has spurred an intense arms race in Silicon Valley. In a matter of weeks, Microsoft and Alphabet-owned Google have shifted their entire corporate strategies in order to seize control of what they believe will become a new infrastructure layer of the economy. Microsoft is investing $10 billion in OpenAI, creator of ChatGPT and Dall-E, and announced plans to integrate generative AI into its Office software and search engine, Bing. Google declared a “code red” corporate emergency in response to the success of ChatGPT and rushed its own search-oriented chatbot, Bard, to market. “A race starts today,” Microsoft CEO Satya Nadella said Feb. 7, throwing down the gauntlet at Google’s door. “We’re going to move, and move fast.”
Wall Street has responded with similar fervor, with analysts upgrading the stocks of companies that mention AI in their plans and punishing those with shaky AI-product rollouts. While the technology is real, a financial bubble is expanding around it rapidly, with investors betting big that generative AI could be as market shaking as Microsoft Windows 95 or the first iPhone.
But this frantic gold rush could also prove catastrophic. As companies hurry to improve the tech and profit from the boom, research about keeping these tools safe is taking a back seat. In a winner-takes-all battle for power, Big Tech and their venture-capitalist backers risk repeating past mistakes, including social media’s cardinal sin: prioritizing growth over safety. While there are many potentially utopian aspects of these new technologies, even tools designed for good can have unforeseen and devastating consequences. This is the story of how the gold rush began—and what history tells us about what could happen next."
timemagazine OP t1_j8rdpka wrote
Reply to The AI arms race is changing everything by timemagazine
From the story:
"This frenzy appeared to catch off guard even the tech companies that have invested billions of dollars in AI—and has spurred an intense arms race in Silicon Valley. In a matter of weeks, Microsoft and Alphabet-owned Google have shifted their entire corporate strategies in order to seize control of what they believe will become a new infrastructure layer of the economy. Microsoft is investing $10 billion in OpenAI, creator of ChatGPT and Dall-E, and announced plans to integrate generative AI into its Office software and search engine, Bing. Google declared a “code red” corporate emergency in response to the success of ChatGPT and rushed its own search-oriented chatbot, Bard, to market. “A race starts today,” Microsoft CEO Satya Nadella said Feb. 7, throwing down the gauntlet at Google’s door. “We’re going to move, and move fast.”
Wall Street has responded with similar fervor, with analysts upgrading the stocks of companies that mention AI in their plans and punishing those with shaky AI-product rollouts. While the technology is real, a financial bubble is expanding around it rapidly, with investors betting big that generative AI could be as market shaking as Microsoft Windows 95 or the first iPhone.
But this frantic gold rush could also prove catastrophic. As companies hurry to improve the tech and profit from the boom, research about keeping these tools safe is taking a back seat. In a winner-takes-all battle for power, Big Tech and their venture-capitalist backers risk repeating past mistakes, including social media’s cardinal sin: prioritizing growth over safety. While there are many potentially utopian aspects of these new technologies, even tools designed for good can have unforeseen and devastating consequences. This is the story of how the gold rush began—and what history tells us about what could happen next."