Is AI already a high-stakes game reserved for the most privileged technology giants?

A review of AI Valley – Microsoft, Google and the Race to Cash in on Artificial Intelligence by Gary Rivlin

Is AI already a high stakes game reserved for technology giants?

That’s the question Gary Rivlin explores in AI Valley, a story that traces how a fascinating idea may still require the heft of economics behind it.

The author follows the journey of Mustafa Suleyman, an International mediator & unlikeliest of protagonists, who would go on to co-found DeepMind with Shane Legg and Demis Hassabis. The story moves from DeepMind’s acquisition by Google, to the making of Inflection AI, where Suleyman tried to build a ‘human AI’, one that understands not just facts but feelings.

Everything seemed perfect till OpenAI hastily launched ChatGPT, throwing the race open. Microsoft steps in with a $10 billion investment. In a strategic partnership with Open AI, the tech giant leapfrogs Google, the latter researching AI for over a decade.  Suleyman however, continues to believe in his product differentiation at Inflection and creates Pi conceptualised as  a companion who is kind, supportive and sympathetic.

But the economics soon kick in. Even with strong funding and an impressive vision, Pi struggles. Apparently, it couldn’t remember conversations or build continuity, greeting returning users as if for the first time. In a world where scale, data and compute define outcomes, Inflection’s humane approach found itself up against the limits of capital. Microsoft moves in decisively yet again by acquiring Inflection in what many call a ‘talent deal’.

It’s a reminder that in technology, vision without scale is rarely enough.

My thoughts :-

Leaders in any industry can’t afford to treat innovation as optional. History is replete with examples of industry leaders like Kodak and Nokia who ceded their position because they failed to keep up.

Rivlin celebrates those who dare to challenge the system; the dreamers who fight the odds. He indulges deftly to prove that successful ideas must have timing, funding and strategic alignment. He explores AI evolution into a great power game, rising barriers for new entrants and the ever increasing need to adapt & evolve. While one fascinating idea succumbs to the muscles of Silicon Valley, the book also showcases Sam Altman’s ambition meeting reality and Satya Nadella’s strategic foresight propelling Microsoft.

The book reserves the right of the first movers for the giants, but leaves enough space for the dreamers to try.

For senior leadership, the lesson is simple yet profound; future leaders must understand technology deeply. Leveraging technology and strategy together is no longer optional, it’s an imperative.

How did you balance the tech and strategy dilemma at the crossroads?Would love to hear from leaders who have lived this question.