- Investors are putting money into AI while battling the fear of missing out.
- Amazon could invest up to $4 billion in OpenAI's AI rival Anthropic.
- Despite the hype and influx of capital, AI companies face similar challenges.
The fear of missing out is real, even among the very wealthy.
Wealthy investors are jumping on the AI train because they don't want to miss out on the next big opportunity.
Amazon recently announced that it will invest up to $4 billion in Anthropic, an AI rival to the famous OpenAI. Amazon invested $1.25 billion in September, more than doubling that amount with its latest $2.75 billion injection.
PitchBook reports that investors poured a total of nearly $30 billion into the industry in 2023 in 691 deals. According to Reuters, artificial intelligence startups will capture a third of all investment dollars in 2023.
Fred Havemeyer, head of AI research at financial services group Macquarie Group Limited, told CNBC that technology companies were the top investors, along with venture capitalists.
“They definitely don't want to miss out on being part of the AI ecosystem,” Havemeyer said. “I definitely think there is FOMO in this market.”
The influx of cash shows that the hype around generative AI is real. bill gates Investors appear to be betting on that, predicting that artificial intelligence will be “as revolutionary as mobile phones and the Internet.”
But that doesn't mean the road ahead will be smooth. Despite the current opportunity, AI companies are struggling with leadership changes and broader consumer fears that the technology will upend employment in the coming years.
