Marketplace Consolidation

Companies Manipulating A.I. Systems for Competitive Advantage
March 10, 2020
Multitask Learning
March 10, 2020

Marketplace Consolidation

As much as the A.I. ecosystem is booming, a rush of acquisitions means consolidation, too.

As much as the A.I. ecosystem is booming, a rush of acquisitions means consolidation, too. Big companies now pick up startups long before they have time to mature—the average age at acquisition is three years old.

Just nine big companies dominate the A.I. landscape: Google, Amazon, Microsoft, IBM, Facebook and Apple in the U.S. and Chinese behemoths Baidu, Alibaba and Tencent—with significant fortification and support from the Chinese government.

On the investment side, Qualcomm, Tencent, Intel Capital, Google Ventures, Nvidia, Salesforce, Samsung Ventures, Alibaba, Apple, Baidu, Citi and In-Q-Tel fund much of the growth.

When it comes to the future of A.I., we should ask whether consolidation makes sense for the greater good, and whether competition—and therefore access—will eventually be hindered as we’ve seen in other fields such as telecommunications and cable.