Why Amazon’s $4-bn investment in ChatGPT rival Anthropic could be a game changer in generative AI space – Business Today
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E-commerce giant Amazon just announced that Microsoft and Google will not be the only tech behemoths competing in the generative AI space. On Monday, Amazon said that it’s investing $4 billion in artificial intelligence firm Anthropic that rivals generative AI apps like OpenAI’s ChatGPT (now being integrated with Microsoft’s search engine Bing) and Google’s AI chatbot Bard.
Amazon wants to take a minority ownership position in Anthropic. “This move highlights how the big tech titan is stepping up its rivalry with other giants Microsoft, Google and Nvidia in the AI space. The AI race is on, with the big tech firms racing to lead in the development, deployment, and utilisation of artificial intelligence technologies. AI is going to reshape whole industries and fuel innovation, and this makes it crucial for investors to pay attention and why almost all investors need exposure to AI investments in their portfolios,” Nigel Green, CEO, deVere Group, a global financial consultancy, said.
He adds that while it seems that the AI hype is everywhere now, we are still very early in the AI era. Investors, says the deVere CEO, should act now to have the ‘early advantage’. “Getting in early allows investors to establish a competitive advantage over latecomers. They can secure favourable entry points and lower purchase prices, maximizing their potential profits,” he adds.
He adds that this tech has the potential to disrupt existing industries or create entirely new ones. “Early investors are likely to benefit from the exponential growth that often accompanies the adoption of such technologies. As these innovations gain traction, their valuations could skyrocket, resulting in significant returns on investment,” he said.
Anthropic was founded roughly two years ago by former OpenAI research executives and recently debuted its new AI chatbot called Claude 2. Amazon is looking to position itself as the one-stop shop for AI. “The company sells its own AI applications too. Anthropic already counts some high-profile backers, including Google and Salesforce Ventures,” he said.
According to experts, Amazon’s $4bn investment into a ChatGPT rival reinforces why almost all investors should have some artificial intelligence (AI) exposure in their investment mix, he says.
Investors should, as always, remain diversified across asset classes, sectors and regions in order to maximise returns per unit of risk (volatility) incurred, he adds. “Diversification remains investors’ best tool for long-term financial success. As a strategy it has been proven to reduce risk, smooth-out volatility, exploit differing market conditions, maximise long-term returns and protect against unforeseen external events. AI is not just another technology trend; it is a game-changer. Investors need to pay attention and include it as part of their mix,” he said.
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