The Newest Investment Boom
Since the introduction of ChatGPT, companies of all sizes have started investing in artificial intelligence in an attempt to capitalize on the game-changing technology. But is AI really the future?
Investors have seen a number of investment waves over the past few years. For example, this time last year, companies all over were announcing an NFT collection, or pivoting toward the metaverse.
Investors will have to determine for themselves whether AI is just another bubble, or if it’s a true boom.
Microsoft (MSFT) essentially opened the floodgates to the AI investing phase with its massive $13 billion bet on ChatGPT’s creator OpenAI. Now, everyone from large tech companies to consulting firms have joined the arms race, making major investments in AI.
Just in the past few weeks, Enterprise software firm Databricks recently announced its intention to buy AI startup MosaicML for $1.3 billion. Thomas Reuters (TRI) opted to pay $650 million for the legal AI assistant Casetext. And PwC announced plans to invest $1 billion over the next three years in AI-related projects.
There are dozens of recent examples of major investments in AI — and, if the trend continues down the track it’s on, it could mean countless more to come.
Boom or Bust?
While it’s clear the technology has immense potential, AI remains in its “Wild West” phase — as exciting as it is unpredictable. Despite uncertainty, user demand appears to be at an all time high. Companies across dozens of industry verticals have been put on notice by fast-moving AI startups with the potential to put them out of business overnight.
But that doesn’t necessarily mean every company will build its own version of ChatGPT. Whether it’s the future or just a phase, the companies that use AI to do better what they already do best will likely win the arms race.
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