Amazon’s $4bn investment into a ChatGPT rival reinforces why almost all investors should have some artificial intelligence (AI) exposure in their investment mix, says the CEO of one of the world’s largest independent financial advisory, asset management and fintech organisations.
The comments from Nigel Green of deVere Group comes as e-commerce giant Amazon said on Monday it will invest $4 billion in Anthropic and take a minority ownership position. Anthropic was founded by former OpenAI (the company behind ChatGPT) executives, and recently debuted its new AI chatbot named Claude 2.
He says: “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.”
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.
“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 notes.
While AI is The Big Story currently, investors should, as always, remain diversified across asset classes, sectors and regions in order to maximise returns per unit of risk (volatility) incurred.
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.
Of the latest Amazon investment, Nigel Green concludes: “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.”