Janice R. Andrews
The fear of missing out (FOMO) has long been a strong incentive in the world of investing. These days, it’s encouraging the ultra-wealthy to invest tens of billions in the rapidly developing field of artificial intelligence (AI). This pattern highlights a mad dash to grab hold of possibilities and invest in what many consider to be the next great thing.
A recent event that sheds light on this tendency is Amazon’s massive investment in Anthropic, an AI competitor to the well-known OpenAI. With a possible investment of an astounding $4 billion, Amazon is demonstrating its unshakeable faith in the power of AI technology to influence the course of the future. The business quickly doubled down on its wager on artificial intelligence’s transformational potential, investing an extra $2.75 billion after initially investing $1.25 billion in September.
The figures say it all. According to PitchBook’s data, investors invested up to $30 billion in the AI sector through 691 deals in 2023 alone. Remarkably, artificial intelligence businesses garnered a substantial portion of this capital inflow, as per Reuters, one out of every three investment dollars went towards this field. Traditional venture investors aren’t the only ones driving this investment boom; IT giants are also enthusiastically getting involved.
Prominent AI researcher Fred Havemeyer of Macquarie Group Limited brought attention to the tangible FOMO that permeates the investment world. Havemeyer said in a CNBC interview that “they definitely don’t want to miss out on being part of the AI ecosystem.” A tangible fear of losing out on potentially game-changing developments drives investors to take quick, decisive action.
Specifically, the attraction of generative AI has investors’ attention around the globe. Co-founder of Microsoft Bill Gates famously predicted a similar revolution in artificial intelligence, comparing its influence to that of mobile phones and the internet. Due to the prospect of significant returns on their investments, investors appear to be responding favorably to this vision and are investing heavily in AI businesses.
But despite the enthusiasm and hope, difficulties are still ahead of us. AI businesses are navigating rough waters characterized by changes in leadership and growing apprehension about the societal ramifications of the technology. The unsettling possibility of mass job dislocation is a source of anxiety for both politicians and consumers.
The investing craze doesn’t seem to be slowing down in spite of these obstacles. Investors are drawn to AI because of its revolutionary potential, which motivates them to take advantage of chances and make a name for themselves in this quickly changing market. Even in the face of continued uncertainty, many people find it impossible to resist the temptation of leading the way in innovation.
The super-rich are investing billions of dollars in AI due to a powerful fear of losing out. One example of this tendency is the enormous sum of money that Amazon invested in Anthropic, demonstrating the general consensus about the disruptive potential of AI. Investors are drawn to the prospect of taking part in what looks to be a life-changing experience, so they persevere despite obstacles as they negotiate the complexity of the AI market.
