Will Big Tech Remain Big In A Decade Or Will AI Sink Some?

The big news today is that AI start-up Perplexity has made an unsolicited offer to acquire Google’s Chrome browser for $34.5 billion. Buying Chrome would give Perplexity access to the more than 3 billion of us who use Google’s browser.

The interesting thing is that Perplexity in its last funding round was valued at $18 billion. While that might raise questions about putting the cart before the horse, Perplexity claims “multiple large investment funds” have agreed to fund the transaction in full. To be sure, OpenAI has also expressed interest in Chrome earlier since it is possible that a US judge may require Google to divest Chrome as a remedy to prevent the tech giant from monopolising the online search market.

In some ways, we have started to see the emergence of AI giants. Sure, they are nowhere as valuable as Big Tech today, but some may get there a few years down the line. Which is why Big Tech is spending more than ever before on AI (people, infrastructure and acquisitions) in order to prevent any such possibility. But if history is any indicator, some large companies may fall by the wayside. Many household names when I started in tech journalism no longer exist, including some of the biggest brands then in personal computers or in enterprise technology. Google was then what a Perplexity is to the giants of Big Tech today. But whether Perplexity or OpenAI will get a chance to leverage Chrome’s massive user base will be dependent on a judicial outcome and Google will fight tooth and nail in order to prevail.

The financial markets are also starting to price in the risk that the AI start-ups pose to established players, and the need for every tech firm to have a comprehensive AI product strategy. 

It’s not like the AI start-ups are waiting on Chrome alone. Perplexity became the number one app on iOS in India thanks to a deal that saw every Airtel user in India get free access to Perplexity Pro. Competitors are making their tools available for free or literally giving away their products to ensure more usage in key sectors like the government. No one will miss any trick to get ahead in this race, even as new, improved versions are constantly being released. 

But despite all the advances, AI tools can make mistakes even with basic maths and that is what is perplexing to some—how can technology amaze us, make us fear for our jobs and also fail to solve basic maths problems. We have a very interesting read for you this week on this issue, and we also explain why this happens. It does seem like AI is still a while away before conquering the frontiers of maths.

And of course, not a week goes by without horror stories from the world of AI, which underline why it is so important when deploying AI to have the right ethical frameworks for its use. AI must be used with care and by those who understand the limitations of AI especially when it comes to health and this piece is a cautionary tale on what could go wrong when caution is thrown to the winds.

While I won’t hazard a guess on whether Big Tech or today’s AI start-ups will prevail in the AI wars, what is for sure is that the personalities in today’s tech wars are far more interesting than the ones I first wrote about two decades ago. Or perhaps it’s just the megaphones CEOs today possess on social media. Nevertheless, we all have a ringside view to this highly entertaining business war over AI thanks to leaders like Elon Musk. This week, Musk took on Sam Altman of OpenAI and also fired barbs at Microsoft to which Satya Nadella responded. While we speak in terms of the companies they head, it will also be interesting to see which of these leaders comes out on top when the winners are feted in the AI races.

Here are some of the other notable pieces from the last few days. The one on Siri highlighted what we discussed last week on how Apple, one of the largest fish in the Big Tech sea, is doing all it can to get its AI strategy right but won’t panic or rush into things because that is not the Apple way. 

• Apple Likely To Launch Revamped Siri In 2026 With App Intents Feature

• India Tycoon Partners US Firm On $2 AI Email Rival To Outlook

• Who Is Mo Gawdat? Ex-Google Exec Warns Next 15 Years Will Be Hell, AI Will Start Disrupting Society From 2027

• SoftBank Swings To Profit On Vision Fund Gains Ahead Of AI Push 

• HPE Unveils New AI-Driven Security, Advanced Data Protection Solutions 

Till next week,

- Ivor Soans

Disclaimer: The views expressed here are those of the author and do not necessarily represent the views of NDTV Profit or its editorial team.