Australia missing out in AI funding boom

Investment in artificial intelligence start-ups is slowing down, especially in Australia, despite a surge in interest after the launch of ChatGPT.

Leading market figures warn of a growing bubble in public AI-related stocks, data compiled for The Australian Financial Review shows investment in the private markets slowing, with a leading local entrepreneur saying the capital raising process has become impossibly difficult.

In the public markets, the unprecedented surge of AI chipmaker Nvidia’s stock – including the biggest market cap daily gain in Nasdaq history – has contributed to talk of an AI bubble. 

Renowned market analyst Jeremy Grantham has raised concerns about this trend, attributing it to the excitement surrounding ChatGPT's launch.

Historically, technological revolutions like AI have been accompanied by hype and stock market bubbles, followed by a period of disillusionment before true transformative impacts are realised.

Australia's tech sector is not immune to these risks, with signs of a potential bubble in the private markets.

- CyberBeat