Orlando Bravo, founder of U.S. private equity firm Thoma Bravo, stated that the rapid development of artificial intelligence technology is causing significant anxiety among investors, as it is difficult for companies to determine which tech firms are worth taking risks on. Speaking at a forum in Miami on Friday, Bravo noted that the AI boom has sparked a strong sense of "fear of missing out" (FOMO) in the private equity market, forcing some institutions to make hasty decisions they may later regret. He also pointed out that in public markets, investors are trading these companies based on PE multiples: "If you are not yet profitable, your stock price will be punished." Bravo mentioned that fund backers are also showing significant hesitation toward AI investments, worried that valuations are too high or risks are too great. "Some of the world's top large LP institutions are choosing to sit on the sidelines in an unprecedented way. This is the first time I've seen this in 30 years," he said, adding that investors want a better understanding of the products before moving forward with deals.