Introduction to Safe Superintelligence
Tech giants Alphabet and Nvidia are investing heavily in Safe Superintelligence (SSI), an artificial intelligence (AI) startup founded by OpenAI co-founder Ilya Sutskever. SSI has reportedly raised $6 billion in its latest funding round, valuing the company at $32 billion. This is a significant jump from its previous valuation of $20 billion in February and $5 billion in September 2024.
The Rising Popularity of AI Startups
The rising popularity of AI startups highlights the enthusiasm in the AI sector. The exact details of Google and Nvidia’s investments in SSI are unknown, but the recent funding round was led by Greenoaks with a $500 million investment. Other notable investors include Andreessen Horowitz, Lightspeed Venture Partners, and DST Global.
The Founding of Safe Superintelligence
Sutskever founded SSI in June last year, after attempting to oust OpenAI CEO Sam Altman with the board’s support. SSI has quickly gained fame due to its high-profile backers and expert founding team, which includes OpenAI’s former chief scientist, Sutskever, and AI research expert Daniel Levy. The company is taking a safety-first approach to building and scaling AI models, similar to OpenAI’s initial vision.
Google’s Investment in SSI
Google is offering more than just financial support to SSI. Google Cloud has struck a deal to provide SSI with access to its in-house AI chips, called Tensor Processing Units (TPUs). These TPUs are designed to deliver higher efficiency and excel at specific AI tasks compared to widely used Graphic Processing Units (GPUs). Although Nvidia is one of SSI’s backers, the startup relies on Google’s TPUs for its AI research and development work.
The Role of Hyperscalers in AI Startups
Hyperscalers like Alphabet, Microsoft, and Amazon are investing in AI startups, which also become their major customers. Training and inferencing of large language models require high computing power and advanced infrastructure, provided by these big cloud providers. Microsoft has a significant investment in ChatGPT maker OpenAI, while Google and Amazon are backing its rival, Anthropic. Nvidia is supporting both OpenAI and Elon Musk’s xAI.
Investing in AI Stocks
Since SSI is a private company, investors cannot invest in it directly. However, they can consider investing in other listed AI stocks. According to TipRanks’ Stock Comparison Tool for Best AI Stocks, Microsoft, Meta Platforms, Micron, Amazon, and Nvidia have a "Strong Buy" consensus rating from analysts. Micron stock offers the highest upside potential among these companies.
Conclusion
The significant investment in Safe Superintelligence by tech giants like Alphabet and Nvidia highlights the growing interest in AI startups. As the AI sector continues to evolve, it will be interesting to see how SSI and other companies navigate the landscape. With the right investment and technology, AI has the potential to revolutionize various industries and transform the world. As investors, it’s essential to stay informed and consider investing in AI stocks that have a strong potential for growth.
