Tech Giants Spend Billions on AI Startups—and Get Just as Much Back.

Tech giants like Microsoft, Amazon, and Google are investing billions of dollars in artificial intelligence (AI) startups while also charging these startups for the use of their cloud platforms. This symbiotic relationship allows the startups to access the necessary computing power and funding to develop AI models and products. The tech giants, in turn, become the largest backers of these startups and stand to benefit if the startups succeed. This trend has sidelined traditional venture capitalists who are more cautious about investing in high-valued deals. The investments and cloud contracts made by the tech giants are separate agreements and are driven by a legitimate business purpose. [Extracted from the article]