Major corporations such as Amazon (NASDAQ:AMZN), Meta (NASDAQ:META), and Zoom (NASDAQ:ZM) have been heavily investing in artificial intelligence (AI) amidst a significant boom in the sector this year. However, recent worries over rising rates have led to losses ranging from 4.4% to 8% for AI ETFs.
Amazon has notably invested $4 billion in the AI startup Anthropic. Meta has introduced generative AI tools for advertisers, while Zoom has launched products to compete with Microsoft (NASDAQ:MSFT) and Google (NASDAQ:GOOGL), who have backed OpenAI. These investments underscore the disruptive potential of AI across various industries, as highlighted by KPMG U.S. chair Paul Knopp.
Despite the recent downturn, analysts predict substantial growth in AI sector investments. Wedbush analysts anticipate an additional trillion dollars of spend in the sector over the next decade. Concurrently, Goldman Sachs forecasts global AI investments to reach $200 billion by 2025 and peak at 4% of U.S. GDP.
CEOs anticipate returns on their AI investments within three to five years, indicating these investments are still in their early stages but hold transformative power. However, senior analysts at Jefferies warn that the AI investment trend is not a zero-sum game, suggesting that winners are likely to emerge from this trend.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.