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Spiros Margaris: AI startups face new obstacles despite billions raised

Spiros Margaris: AI startups face new obstacles despite billions raised
AI startups competition for chips grows

Spiros Margaris, founder and owner at Margaris Ventures, states that AI startups can raise billions, yet still struggle to secure sufficient computing power.

Margaris highlights that competition for necessary chips has led even rival firms to strike deals, suggesting that for AI companies, access to computing resources may soon rival funding itself in importance.

Margaris has previously noted that rising competition in the AI sector is pressuring company profits as firms engage in price wars that benefit customers but challenge valuations, as detailed in this analysis. In a separate report, he highlighted how Meta reduced its tax bill by nearly $4 billion last year by classifying AI data centers as experimental projects, according to his review. These observations reflect ongoing changes in industry costs and strategies among leading technology players.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.

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