Large technology companies are vying for a share of the artificial intelligence market, with the main driving force behind this competition believed to be the phenomenon of “FoMO,” according to a report from CNBC.
The fear of missing out (FoMO) is a fear of missing opportunities, an ancient and well-known psychological phenomenon that has become widespread since 2004.
At the end of last March, Amazon announced its largest external investment in its history, totaling three decades, with the aim of advancing in the field of artificial intelligence.
The massive tech company stated that it will allocate an additional $2.75 billion to support the startup company “Anthropic,” which some consider a strong competitor to Open AI. Anthropic has developed its initial artificial intelligence model to support the conversational robot “Claude,” with the third version launched at the beginning of March.
The significant investment in Amazon is not a rare occurrence during this period but rather part of an ongoing trend within the technology industry, where giant tech companies have stopped acquiring startups due to antitrust issues and shifted towards investing in the development of generative artificial intelligence models.
These large companies are heavily involved in integrating artificial intelligence technologies into their vast portfolios of products and features to ensure they do not fall behind in that market, with industry revenues expected to reach $1.3 trillion by 2032 according to Bloomberg estimates.
Major technology companies are seeking a portion of the artificial intelligence sector, with the main driving force behind this race believed to be the “FoMO” phenomenon, according to a report from CNBC.
The FoMO phenomenon is a fear of missing out on opportunities, and while it’s an old psychological phenomenon, the term’s popularity began in 2004.
At the end of the previous March, Amazon announced its largest external investment in its history, spanning three decades, as part of its efforts to excel in artificial intelligence.
The massive tech company clarified that it will invest an additional $2.75 billion to support the innovation company “Anthropic,” which some see as one of the strongest competitors of Open AI. Anthropic is developing its initial artificial intelligence model that supports the conversational robot “Claude,” of which the third version was launched at the beginning of March.
Amazon’s substantial investment is not a unique event during this period but rather a part of a continuing trend within the technology industry. This is because major tech companies have ceased acquiring startups due to antitrust issues and have instead begun investing in the development of generative artificial intelligence models.
These giant companies have entered the field with full force, with Amazon entering through its investment in Anthropic, Microsoft supporting Open AI, Google developing its own models, as well as Meta, and finally Apple looking to collaborate with Google to integrate artificial intelligence technologies into its products.
These companies are competing to integrate artificial intelligence technologies into their vast array of products and features to ensure they keep up with the market, which is expected to reach revenues of $1.3 trillion by 2032 according to Bloomberg estimates.
What Harvard Business Review confirms is that the big tech companies do not intend to spend these huge amounts of money solely to participate in the “hype cycle,” meaning that these new technologies are experiencing temporary popularity.
Therefore, it can be said that the current investments in artificial intelligence align with the product development plans pursued by major technology companies.During the latest quarterly profit distribution meetings, the executives of those companies emphasized their focus on developing smart technology and explained to investors the importance of spending money to achieve returns, whether through internal model development or by investing in startups.
In the past year, Microsoft’s CFO, Amy Hood, confirmed that the company is working on “organizing its workforce to prioritize artificial intelligence without increasing the actual number of employees.”
Hood pointed out that Microsoft will continue to prioritize investing in artificial intelligence, as it is “the element that will define the features of the next contract.”
Leaders of Google, Apple, and Amazon informed investors that they are willing to cut costs overall in various sectors to redirect more funds to enhance their efforts in artificial intelligence.
Certainly, if artificial intelligence is the technology that will determine the key features of the upcoming contract, giant technology companies, with all these massive investments, aim – as usual – to shape this future in their own way.
(CNBC)
