Good Luck Selling Your AI Startup

There has been a no wilder time than the present to build a company around artificial intelligence. The server bills are astronomical, for one. Also the market for talent is red hot, and you’ll end up paying through the nose for good people. Even if you do get funding, staff up, get the product off the ground, and start making headway in a crowded field, there’s the specter of Big Tech looming overhead. The hypercarnivorous raptors of Silicon Valley—Google, Apple, Amazon, and Meta—will fix their steely eyes on the plump prey of your best employees and your intellectual property.

But they can’t just buy you. Not anymore; outright acquisitions could draw the attention of regulators in the US and Europe, where governments are ramping up their antitrust efforts. Now instead of gobbling you up, a big tech company will license your tech and bring your top talent into their offices to collaborate with their employees. This maneuver—not an acquisition, more like an acquihire with some partnerships included—is something we’ve seen a few times in recent months. And we can expect more.

This week, we welcome WIRED senior writer Paresh Dave back onto the show to discuss the current trend of partnerships between small AI companies and the tech giants. We also talk about how regulators are really cracking down on Google in particular.

Show Notes:
Read about the US court ruling that found Google engaged in monopolistic practices to increase its search engine’s dominance. Read more about Character AI, Meta, and customizable chatbots. Read all of WIRED’s antitrust coverage.

Recommendations:
Paresh recommends playing games on Netflix, like Triviaverse. Mike recommends the new documentary Mountain Queen: The Summits of Lhakpa Sherpa, which is also on Netflix. Lauren recommends “Inside the Secret Negotiations to Free Evan Gershkovich” from The Wall Street Journal.

Paresh Dave can be found on social media @peard33. Lauren Goode is @LaurenGoode. Michael Calore is @snackfight. Bling the main hotline at @GadgetLab. The show is produced by Boone Ashworth (@booneashworth). Our theme music is by Solar Keys.