No matter your industry, you’ve probably heard about ChatGPT. ChatGPT, an abbreviation for Chat Generative Pre-Trained Transformer, is making headlines everywhere and shaking up how we live and work.
In many ways, the artificial intelligence-powered chatbot platform developed by OpenAI, using natural language processing (NLP), is almost like talking to a human. If you’re an investor, you might wonder how to get in on the ground floor of this AI revolution.
However, at the moment, neither ChatGPT nor its parent company, OpenAI, are publicly traded, so there’s no easy way to invest directly in ChatGPT stocks. However, you can invest indirectly through companies utilizing OpenAI’s technology for their projects. By the end of this article, you should better understand what ChatGPT stock is and how to invest in it indirectly through publicly traded companies utilizing OpenAI’s technology.
You’ll find out why investing in these companies can be a great way to capitalize on the ever-growing AI industry.
Key Takeaway
ChatGPT stock is not publicly traded, but you can invest indirectly through companies using OpenAI’s technology. Microsoft Corporation NASDAQ: MSFT and NVIDIA Corporation NASDAQ: NVDA are top picks due to their AI integrations and partnerships.
Understanding OpenAI and ChatGPT
ChatGPT is an artificial intelligence tool produced by San Francisco-based research lab OpenAI. ChatGPT functions like Google Search for questions, where you can compose text on any topic and communicate with it just like you would with another person.
In just two months after its launch on November 30, 2022, it acquired 100 million users and could revolutionize how we search the web and create content. It uses OpenAI’s flagship product, GPT, a powerful NLP algorithm. GPT uses machine learning to generate human-like conversations for countless tasks, from content generation to customer service to search engine optimization (SEO). Every day, people experiment with the tool and make new discoveries about its abilities and uses.
ChatGPT uses NLP to respond to questions, generate stories and conduct conversations. It’s an interface between humans and computers, allowing for more natural conversations between us and our machines.
ChatGTP is particularly exciting because it’s powered by OpenAI’s deep learning algorithms, trained on millions of conversations across millions of posts containing multiple languages. It can quickly learn from any conversation. To do this, it combines several advanced technologies, such as reinforcement learning.
It uses human feedback in its training loop to reduce harmful, untruthful or biased outputs. Its “unsupervised” approach means machine-learning algorithms can discover hidden patterns or data groupings without human intervention. By leveraging these tools, OpenAI has produced an AI-powered chatbot capable of conversing nearly as intelligently as a human.
Investment Landscape in AI
The investment landscape in the AI sector is as vast and expansive as the technology itself. Worldwide AI investments are projected to reach upwards of $200 billion by 2025.
In 2023, AI startups attracted a record $50 billion in investments. A $10 billion investment from Microsoft into OpenAI ignited a frenzy, resulting in over 70 rounds of $100 million or more in venture capital funding for startups working on AI models and applications, with valuations soaring to new heights. However, concerns arose about the sustainability of this trend and how many successful players can emerge in a highly competitive field.
One thing is clear: the surge in interest and funding is transforming AI from an experimental novelty into a mainstream business tool. The clear potential for high returns has made the sector a magnet for investors.
With every passing year, AI systems become more sophisticated, capable of performing complex tasks that were once the exclusive domain of humans. This is particularly true in fields such as healthcare, where AI has been used to predict disease outbreaks, develop personalized treatment plans and even assist surgeons during operations.
The market potential of AI is immense. As AI continues integrating into every facet of our daily lives, the demand for AI-powered solutions is only expected to grow. One report estimates that AI could contribute up to $15 trillion to the global economy by 2030. This represents a massive opportunity for companies operating in the AI market.
AI technologies are not only transforming businesses but also have the potential to revolutionize various aspects of society. It’s becoming increasingly apparent that AI can improve education and healthcare, address climate change and even enhance public safety, and the use cases are becoming more apparent all the time.
Investing in OpenAI
What is ChatGPT stock, exactly? Currently, it’s nonexistent.
Chat GPT stocks are not publicly traded, so the best way to invest is through companies that use OpenAI’s technology. You can also consider investing in AI exchange-traded funds (ETFs), which include a diversified portfolio of stocks within the artificial intelligence industry. Lastly, you can monitor the news and wait for an initial public offering of the company itself, then buy stock in it.
Neither ChatGPT nor its parent company, OpenAI, are currently publicly traded. However, that doesn’t mean there aren’t ways to capitalize on the growth and popularity of OpenAI as an investor. Here are some ideas.
Invest in Companies that Use OpenAI
However, you can invest indirectly through companies using OpenAI’s technology, such as Microsoft Corporation NASDAQ: MSFT and NVIDIA Corporation NASDAQ: NVDA. These companies have incorporated OpenAI’s technology into their products and services, making them potential investment opportunities for those interested in ChatGPT’s AI tools.
For instance, Microsoft has been integrating OpenAI’s technology since partnering with the company in 2019. It’s utilizing OpenAI’s GPT model for its Bing search engine, making GPT available to developers through its Azure OpenAI Service and Microsoft cloud storage. It continuously seeks ways to incorporate more AI into its products and services.
NVIDIA is another potential investment opportunity for ChatGPT’s AI tools. Many AI applications use NVIDIA’s graphics processing units (GPUs), including ChatGPT’s NLP. The company is also involved in cutting-edge research in deep learning and utilizes OpenAI’s technology for its projects.
AI ETFs
Investing in AI ETFs could be a good approach if you’re interested in ChatGPT but looking to minimize risk. These funds include a diversified portfolio of stocks within the AI industry, including those utilizing OpenAI’s technology.
As the AI industry and ChatGPT’s potential grow, investing in AI ETFs might be an intelligent way to invest in AI stocks without betting on one specific company.
ETFs such as the Global X Robotics and Artificial Intelligence ETF NASDAQ: BOTZ and the iShares Robotics and Artificial Intelligence Multisector ETF NYSEARCA: IRBO offer exposure to a wide range of companies in the AI industry, including those using OpenAI’s technology. These ETFs offer the potential for long-term growth as the use of AI continues to grow across industries.
Can You Invest in ChatGPT?
OpenAI, the company behind ChatGPT, is currently not publicly traded. It was founded in 2015 to prevent AI monopolization by tech giants to develop “artificial general intelligence” for the benefit of humanity.
Notable tech industry figures like Elon Musk and Peter Thiel initially supported OpenAI, but Musk resigned from the board in 2018 to avoid conflicts with his other ventures. In 2019, OpenAI became a “capped-profit” for-profit entity after receiving a $1 billion investment from Microsoft. Today, ownership is split between Microsoft (49%), other stakeholders (49%) and the original non-profit foundation. OpenAI LP handles the commercial side, while OpenAI Inc. remains a nonprofit umbrella organization.
If you’re interested in investing in ChatGPT, keep an eye on any updates regarding OpenAI’s potential IPO. You can regularly search MarketBeat for news and other updates related to Open AI stock and its partners. Once it becomes a publicly traded company, you can purchase OpenAI stock through a broker or an online trading platform.
However, before investing in any stock, no matter how promising the company seems, conduct thorough research, including checking the Chat GPT stock price history and analyzing its financials, management team and stock market trends.
Risks and Considerations
Investing in AI stocks, including those indirectly related to ChatGPT, can be quite lucrative, given the current trend towards AI and the increasing demand for smarter technology in different industries. With proper research and risk management, investing in ChatGPT or other AI-related stocks could be smart if you capitalize on technological advancements and companies leading the way.
However, as with any investment, exercise caution. Always diversify your portfolio to minimize risk — don’t put all your eggs in one basket, no matter how attractive the basket looks.
Remember that investing in AI-related companies, like those incorporating OpenAI’s technology, can be unpredictable and volatile. Moreover, ChatGPT and its parent company, OpenAI, are not yet publicly traded, so it may be wiser to consider investing in Microsoft stock or in buying stocks in other companies with a track record of success in the AI industry.
Also, remember that the field of artificial intelligence is evolving faster than the government can regulate it. Regimes around the world grapple with defining their stance on AI. Legal frameworks governing AI are fluid and can change rapidly, possibly leading to sudden changes in business models or even outright shutdowns.
Technological limitations also pose a risk. AI is not infallible. In many areas, the technology is imperfect and requires development and fine-tuning. For example, ChatGPT can still produce inept, harmful or irrelevant responses. Not to mention, AI systems can be vulnerable to various forms of manipulation or attack.
This is a hot topic and has caused setbacks for companies involved in AI and may continue to in the future, impacting their financial performance and the value of their investments.
There’s always the risk of competition, too. The AI sector is packed with companies vying for dominance. Google, Amazon, and IBM are major competitors and have vast resources at their disposal, so there’s high potential for sudden shifts in market dynamics. This can create volatility in the stocks of companies involved. While it can lead to innovation and growth, it can also result in some businesses failing to keep up with the pace of change or even going under entirely.
Future Outlook of Investing in OpenAI and ChatGPT
ChatGPT is poised to revolutionize the AI industry regarding its potential uses and ability to generate human-like conversations. As the technology continues to evolve and we discover new applications, there are a few trends that you can look for when considering putting your money in companies using ChatGPT technology.
The first trend is the increasing use of ChatGPT in customer service settings. AI-powered customer service bots are becoming increasingly popular as they can provide quick, efficient and personalized responses. This trend will continue as businesses strive to increase customer service quality while reducing manual customer service costs.
Second, ChatGPT is used in more creative ways than ever before. From natural language processing applications to generating stories and creating graphic design, ChatGPT can be used for various creative tasks, opening up new opportunities for businesses looking to expand.
Finally, ChatGPT’s ability to quickly process large amounts of data will increase demand for it in business settings. AI-powered chatbots can perform sentiment analysis (determining someone’s attitude toward a product by analyzing their tone) and automated market research, leading to valuable insights into customer behavior and helping companies make more informed decisions.
These developments suggest a promising future for ChatGPT and similar AI technologies. Choosing to invest, you could receive lucrative rewards if they continue. And if legislative support for AI technologies continues to emerge worldwide, it could cement the role of AI, providing a more secure landscape for your investment dollars.
The Smart Approach to Artificial Intelligence
ChatGPT will continue to grow, evolve and change how we live, work and communicate, making it an alluring investment. Although it’s not publicly traded, you can indirectly invest in ChatGPT through companies using OpenAI’s technology.
Ultimately, whether or not to invest in ChatGPT, MSFT stock or other AI-related stocks is a decision you should only make after careful consideration, research and/or consultation with a financial advisor to ensure it aligns with your investment goals and risk tolerance.
FAQs
If you’ve read this far, you should now understand what a ChatGPT stock ticker is, what it does and the different investing options. But you may still have questions. Below, we’ve tackled the most commonly asked questions about investing in this revolutionary new technology.
Is ChatGPT publicly traded?
ChatGPT is not yet publicly traded, so you might not get the answer to what you want, “What is ChatGPT stock ticker?”
OpenAI, the parent company of ChatGPT, is currently a non-publicly traded venture. As such, if you’re interested in investing in ChatGPT, you must do it indirectly by investing in companies that use OpenAI’s technology.
What is ChatGPT used for?
ChatGPT is machine learning software developed by OpenAI. It’s an AI-powered text-generating tool that can generate human-like conversation. People have successfully used it for many applications, including natural language processing, content creation and dialogue generation for virtual assistants.
Are ChatGPT stocks overpriced?
ChatGPT stocks are currently not publicly traded, so they’re difficult to value accurately. However, the technology behind ChatGPT has been well-received in the tech industry and has a high potential for future uses. That said, always be wary of overpaying for a stock. Consider researching the team behind OpenAI’s technology and its potential applications before investing money in this type of stock.
Before you consider Global X Robotics & Artificial Intelligence Thematic ETF, you’ll want to hear this.
MarketBeat keeps track of Wall Street’s top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on… and Global X Robotics & Artificial Intelligence Thematic ETF wasn’t on the list.
While Global X Robotics & Artificial Intelligence Thematic ETF currently has a “hold” rating among analysts, top-rated analysts believe these five stocks are better buys.