Jeff Bezos made his fortunes with Amazon, but the billionaire also diversified into other companies, putting a lot of capital into early-stage startups. Some of them went bust, but others have returned his investment many times over. He was one of the first investors in leading companies like Google, Twitter, Airbnb and Uber.
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Bezos has shifted his attention to AI robotics as he seeks new opportunities to multiply his money. The Amazon founder recently invested in Physical Intelligence, a robot startup that’s located in San Francisco.
Investors can learn valuable lessons from Bezos’ venture capital bets. These are some of the highlights.
Artificial intelligence has been front-and-center for a few years. Nvidia’s ascent to a $3 trillion market cap put the industry on many investors’ radars. Many AI stocks have performed well over the past 2 to 3 years, especially chipmakers.
That’s some important context for Bezos’ pivot into AI robotic investments. Artificial intelligence is still in its early innings, and the technology’s potential extends well beyond asking ChatGPT a bunch of prompts.
Robots and self-driving cars are two of the many possibilities that AI enables. Bezos has seemingly recognized the opportunity, and made a bunch of investments in the industry. If one of his investments becomes a massive success, it could quickly multiply his money and make up for any that fall short.
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Jeff Bezos made a lot of money in his early venture capital years by investing in companies that capitalized on the internet. Google, Twitter and Airbnb are some of his most notable early investments.
While the internet still presents opportunities for billion dollar companies to emerge from startup ideas, the industry has become more competitive. It’s more difficult for a new social network to stand out since choices like Facebook, Instagram, YouTube and X command a lot of attention.
Likewise, Google has established such a lead in the online searching industry that an upstart search engine company is less likely to gain traction. The investments that worked when Bezos was getting started don’t have the same long-term potential right now. That is likely part of the reason Bezos is shifting his attention to AI startups.
