The New A.I. Deal: Buy Everything but the Company

🌈 Abstract

The article discusses how major tech companies like Google, Microsoft, and Amazon are acquiring the technology and top employees of AI startups, but are avoiding outright ownership of the startups themselves.

🙋 Q&A

[01] Advertisement: The New A.I. Deal: Buy Everything but the Company

1. What is the key point of the article?

• Major tech companies are making deals with AI startups to acquire their technology and top employees, but are avoiding outright ownership of the startups.
• For example, Google made a deal with the AI startup Character.AI to bring back its founders and about 20% of its employees, as well as acquire its technology, without buying the company.

2. Why are tech giants avoiding outright ownership of AI startups?

• The article suggests that tech giants may be avoiding owning AI startups in order to "duck regulation" - likely referring to increased scrutiny and regulation around the growing power of large tech companies.

3. What is the significance of the Google-Character.AI deal?

• The deal shows how tech giants are able to acquire the key assets of AI startups (technology, talent) without having to buy the entire company.
• This allows the tech giants to benefit from the innovations of the startups without taking on the full responsibilities and risks of owning the startup.

[02] Cade Metz's Reporting

1. What is Cade Metz's role in relation to this article?

• Cade Metz is the author of the article, which is about artificial intelligence, driverless cars, robotics, virtual reality and other emerging technology areas.