Big Tech's Dive into Generative AI: The Future of Search, Cloud, and Productivity

How Big Tech is Shaping the AI Landscape

In the ever-evolving landscape of AI, the intersection of Big Tech and Generative AI has become a focal point. Below are my notes from a dive deep into the Q2 earnings calls of the tech giants to understand their strategic moves in the Generative AI space.

Amazon: Building the LLM Stack

1. Compute: Amazon's three-layered approach to the LLM stack starts with compute. They're relying on NVIDIA’s H100 GPUs and doubling down on their own chips, Tranium and Inferentia. The latter's second version promises a competitive price-performance ratio, though uptake stats remain under wraps.
2. LLMs as a Service: Amazon Bedrock is positioning itself as the go-to for companies not keen on training their own models. With support for a range of LLMs, including their own Titan, Amazon caters to a diverse clientele, from Bridgewater Associates to Ryanair.
3. Applications: While Amazon is developing its own applications, like the AI-powered coding companion Amazon CodeWhisperer, they're betting on other companies building on AWS.

Microsoft: Infusing AI Everywhere

1. Azure: Microsoft's OpenAI Azure Service is gaining traction, with big names like IKEA and FlipKart onboard. Their belief? AI services are a significant driver of Azure's growth, especially as they position themselves as the preferred choice for new AI workloads.
2. Copilots: Microsoft is integrating AI copilots across its product range. Github Copilot, for instance, has seen a 2x Q/Q growth, with giants like Airbnb leveraging it.
3. Bing and Search: With Bing being the default for OpenAI's ChatGPT and its chat feature hitting a billion conversations, Microsoft is solidifying its position in the search and chat space.

Meta: Riding the AI Wave

1. Recommendation Systems: Meta's larger models are enhancing user engagement, with AI-recommended content now being the fastest-growing category on Facebook's feed.
2. Infrastructure: Meta's strategy of open-sourcing, as seen with their Llama 2 model, is expected to continue, given the benefits of innovation and efficiency gains.
3. Ad Products: With tools like Meta Lattice and AI Sandbox, Meta ensures advertisers get the best ROI.
4. Consumer Products: While Generative AI hasn't prominently featured in Meta's core apps yet, Zuckerberg hints at exciting developments on the horizon.

Alphabet: An AI-First Approach

1. Search: Google's Search Generative Experience, powered by LLMs, promises to revolutionize how users interact with search, potentially being the most significant change in a decade.
2. Productivity: Google's Bard and Google Duet are enhancing user productivity, with the latter allowing AI collaboration in tasks.
3. Cloud: Google's AI-optimized infrastructure is a magnet for Gen AI unicorns, with over 70% of them using Google Cloud. Their AI platforms have seen a staggering 15X growth in customer leverage.

Apple: Playing the Waiting Game

Apple's approach to AI, as always, remains enigmatic. While AI and ML are integral to their products, as Tim Cook pointed out with features like Personal Voice and Live Voicemail for iOS 17, Apple's strategy seems to be more about waiting for the right moment to unveil their AI initiatives.

Closing Thoughts:

The Q2 earnings calls have made one thing clear: Big Tech is heavily invested in Generative AI. Each company, while following its unique strategy, recognizes the transformative potential of AI. As these tech giants continue to innovate and compete, the real winners will be the users who stand to benefit from a new era of AI-driven experiences.