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Jul 11, 2023

Is the FOMO

Home » AI » Trending News TL;DR Breakdown Generative AI has created a sense of FOMO (Fear Of Missing Out) in the corporate world since the release of ChatGPT in November 2022. Mid-sized and large

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TL;DR Breakdown

Generative AI has created a sense of FOMO (Fear Of Missing Out) in the corporate world since the release of ChatGPT in November 2022. Mid-sized and large corporations are experiencing a convergence of fear and greed, resulting in a frenzy of mergers and acquisitions (M&A). Observers point out the driving factors behind the Generative AI … Read more

Generative AI has created a sense of FOMO (Fear Of Missing Out) in the corporate world since the release of ChatGPT in November 2022. Mid-sized and large corporations are experiencing a convergence of fear and greed, resulting in a frenzy of mergers and acquisitions (M&A). Observers point out the driving factors behind the Generative AI M&A wave and highlight recent high-profile acquisitions. Additionally, corporations are predicted to join the gold rush and make major Generative AI acquisitions.

Generative AI can revolutionize innovation and creativity by generating new ideas, designs, and content. This can empower companies to develop unique data-driven products and services, giving them a competitive advantage.

Corporations can streamline processes and save time and resources by leveraging AI models that generate content or perform complex tasks. Automation leads to increased efficiency across various operations.

Generative AI enables corporations to offer tailored recommendations and customized customer experiences. This personalized approach enhances customer satisfaction and fosters customer loyalty.

Through the generation of synthetic data, Generative AI helps companies analyze large datasets and extract valuable insights. This data-driven decision-making process optimizes overall business performance.

Databricks acquired MosaicML, a Generative AI company, for $1.3 billion, mainly in stock. With just 62 employees, this acquisition accounted for approximately $21 million per employee. MosaicML had previously raised $37 million in venture funding.

Thomson Reuters acquired Casetext, a company specializing in Generative AI, for $650 million. With 110 employees, this acquisition amounted to around $6 million per employee. Casetext had raised $64 million in venture funding.

Google and Meta (formerly Facebook) face pressure from the Microsoft-OpenAI partnership and may engage in Generative AI acquisitions to stay competitive. Both companies have a history of strategic acquisitions, and Generative AI will likely be a focus for future deals.

Known for their acquisitive nature, Oracle and Cisco may also make strategic Generative AI acquisitions to stay relevant and expand their AI capabilities.

IBM may seek major acquisitions in the Generative AI space to catch up in the AI sector after the challenges faced by Watson AI.

Companies in content generation and customer service sectors may be early adopters of Generative AI acquisitions due to the technology’s potential to enhance their operations.

Generative AI has triggered a gold rush in the corporate world, as companies fear missing out on the immense potential of this technology. Its ability to drive innovation, automate tasks, personalize experiences, and extract insights makes it attractive for corporations seeking growth and efficiency. Recent high-profile acquisitions have set the stage for increased M&A activity in the Generative AI sector. While it’s challenging to predict specific acquisitions, the market frenzy is evident, and corporations are positioning themselves to capitalize on the transformative power of Generative AI.

John Palmer is an enthusiastic crypto writer with an interest in Bitcoin, Blockchain, and technical analysis. With a focus on daily market analysis, his research helps traders and investors alike. His particular interest in digital wallets and blockchain aids his audience.