Anthropic was founded by former OpenAI, the company behind ChatGPT, executives.

All investors may have some artificial intelligence exposure in their investment portfolio.

Amazon, ChatGPT, developer, OpenAI, AI company, investment, Anthropic

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 that 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.”

As part of the agreement, Anthropic will relocate the majority of its software to Amazon Web Services data centers and train the models that power its chatbots and other applications using processors made by the cloud computing provider. Anthropic will receive a cash boost in addition to access to Amazon’s computer capacity, which will help it pay the enormous costs associated with building and running large-scale AI models. According to a statement released on Monday by the companies, Amazon will own a tiny stake in Anthropic.

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.”

https://www.financialexpress.com/business/investing-abroad-amazon-to-invest-4-billion-in-anthropic-a-rival-to-chatgpt-developer-openai-3254292/