Investors are pouring funds into AI as they grapple with the fear of missing out. Anthropic, an AI rival of OpenAI, may receive up to $4 billion in investment from Amazon. Despite the hype and influx of cash, AI companies face various challenges. Sign up to receive the latest insights on today's biggest stories in markets, tech, and business. Stay informed with a personalized feed while on the go. Download the app. The fear of missing out is prevalent, even among the mega-rich. Wealthy investors are joining the AI trend to ensure they don't miss out on the next big thing. Amazon recently announced its intention to invest $4 billion in Anthropic, a competitor of the well-known OpenAI. In September, Amazon initially invested $1. 25 billion and subsequently increased it to $2. 75 billion. According to PitchBook, investors have contributed nearly $30 billion to the industry through 691 deals in 2023.

Reuters reports that artificial intelligence startups secured one-third of all investment dollars in 2023. Notably, technology companies and venture capitalists are among the prominent investors, as stated by Fred Havemeyer, a leader of AI research at the financial services group Macquarie Group Limited, in an interview with CNBC. "They certainly don't want to miss out on participating in the AI ecosystem, " Havemeyer remarked. "I definitely believe that FOMO exists in this market. " The substantial cash influx validates the widespread excitement surrounding generative AI. Bill Gates once predicted that artificial intelligence would be as revolutionary as mobile phones and the internet, and it appears that investors are placing their bets on this sentiment. However, the road ahead is not without obstacles. Despite the current profitability of AI ventures, these companies have encountered difficulties such as leadership changes and concerns from consumers about potential disruptions to employment in the years to come.