Ultra-wealthy investment firms like Jeff Bezos’ family office are raising big funds for AI startups. Bezos Expeditions led a $405 million round for robotics startup Field AI. Google billionaire Eric Schmidt’s family office backed six AI startups in the last six months. Family offices prefer AI stocks over startups for better valuations.
Goldman Sachs survey shows 52% of family offices are invested in AI through public equities. Top S&P stocks are AI-driven, making up 40% of the index. Family offices favor AI stocks due to better valuation in public markets. They are also investing in companies using AI for productivity and efficiency.
Two-thirds of respondents managing $1 billion+ in assets reported investing in AI. Family offices are warming up to AI despite average age of principals being 68. Public equities remain popular, but accessing more opportunities means investing in private markets. Over 800 unicorns present investment opportunities.
Goldman Sachs sees family offices shifting to AI due to its ubiquitous presence in daily life. AI search functions like Google have made people more receptive to the technology. Despite a preference for public equities, private markets are essential for more investment opportunities. The backlog of unicorns might take longer to clear post-pandemic.
Read more at CNBC
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