Precedence Research forecasts that the global AI market will experience substantial growth, reaching an estimated value of US$2.57 trillion by 2032. While it’s challenging to gauge the exact impact of OpenAI’s ChatGPT on this market, S&P Global suggested in December 2023 that the overall revenue of generative AI could experience a significant compound annual growth rate (CAGR) of 57.9% through 2028, potentially reaching US$36.36 billion.
Naseem Husain, senior vice president and ETF strategist at Horizons ETFs, remarked that the emergence of generative AI, particularly with the introduction of ChatGPT, marked a notable trend in 2023. This technology has spurred the development of various generative and chat AI models.
Nevertheless, OpenAI has faced considerable scrutiny and controversy, ranging from concerns about job displacement to legal disputes. Several lawsuits have been filed against OpenAI, including copyright infringement claims by media outlets and a class-action lawsuit by the Authors Guild.
Despite these challenges, there remains significant interest in generative AI technology among investors. Many are exploring opportunities to invest in OpenAI’s ChatGPT and other generative AI technologies. Here, the Investing News Network (INN) addresses these inquiries and offers insights into this evolving landscape.
What is OpenAI’s ChatGPT?
ChatGPT, developed by San Francisco-based OpenAI, is an AI software application that utilizes reinforcement learning from human feedback (RLHF) to simulate human-like conversations based on various user prompts. This technology, commonly known as an AI chatbot, learns from extensive training on text data sourced from diverse online platforms, including encyclopedias, books, and news articles.
Following its launch for public testing in November 2022, ChatGPT garnered significant attention, with over a million users engaging with the platform within the first week. Users were impressed by its ability to engage in natural language conversations and generate human-like responses.
In addition to conversation capabilities, ChatGPT can undertake tasks such as composing short stories, crafting marketing content, solving complex mathematical problems, and writing code in multiple programming languages.
Building on the success of ChatGPT, OpenAI introduced a more advanced version called GPT-4 in March 2023. This upgraded iteration, available to paid subscribers and Microsoft Copilot users, boasts enhanced capabilities, including the ability to process visual inputs and demonstrate expertise across various subjects.
Despite these advancements, challenges persist, with ChatGPT still prone to delivering inaccurate or nonsensical responses. OpenAI acknowledges these limitations and advises caution when utilizing the technology.
What is Elon Musk’s involvement with OpenAI?
Elon Musk, along with other prominent investors, co-founded OpenAI in 2015. However, Musk distanced himself from the organization in 2018 to focus on his other ventures, notably Tesla.
Following the public testing of ChatGPT, Musk expressed both admiration and concern regarding the technology’s capabilities. He voiced apprehensions about the potential risks associated with developing highly advanced AI.
Musk’s relationship with OpenAI became strained when he accused the company of deviating from its original mission as a non-profit organization. In March 2024, Musk filed a lawsuit against OpenAI, alleging a breach of contract related to the company’s non-profit status.
Is ChatGPT a revolutionary advancement or overhyped technology?
The question of whether ChatGPT represents a groundbreaking innovation or a fleeting tech trend remains unanswered. While the technology has demonstrated impressive capabilities, including natural language processing and content generation, it also faces significant challenges and criticisms.
One major hurdle is ChatGPT’s tendency to produce inaccurate or misleading responses, a flaw that OpenAI acknowledges and seeks to address. Additionally, concerns have been raised regarding the technology’s potential for spreading misinformation and perpetuating biases present in its training data.
Despite these drawbacks, ChatGPT continues to attract interest from various industries, with companies exploring its applications in content creation, customer service, and other fields.
What does the future hold for OpenAI and ChatGPT?
OpenAI’s ChatGPT platform is available for free public use via the web, with additional features offered through a paid subscription service called ChatGPT Plus. The company has also partnered with various organizations to integrate ChatGPT technology into their platforms, expanding its reach and potential applications.
As generative AI technology advances, it is expected to play a growing role in various industries, potentially replacing human labor in tasks such as content creation and customer support. However, concerns persist regarding the ethical and societal implications of widespread AI adoption, as evidenced by ongoing legal challenges against OpenAI and its partners.
Looking ahead, OpenAI aims to further enhance its chatbot technology and expand its capabilities. The company’s acquisition of AI creative firm Global Illumination and its plans to empower users to create custom chatbots signal a commitment to innovation and accessibility.
What is Google’s Bard AI?
In March 2023, Google introduced Bard AI, its own conversational AI service built on the Language Model for Dialogue Applications (LaMDA). Similar to ChatGPT, Bard AI utilizes large language models to provide human-like responses to user queries and prompts.
While Bard AI offers access to up-to-date information online, it also faces challenges related to accuracy and reliability. Like ChatGPT, Bard AI has been criticized for providing misinformation and erroneous responses.
In early 2024, Google launched an updated version of Bard AI called Gemini AI, powered by the Gemini Ultra large language model.
Which stocks stand to benefit from AI chatbot technology?
Beyond companies directly involved in generative AI technology, several sectors within the tech industry stand to gain from advances in AI chatbot technology. These include semiconductor manufacturers, network equipment providers, cloud computing firms, and others.
Publicly traded companies with indirect exposure to AI chatbot technology include Nvidia, Taiwan Semiconductor Manufacturing Company (TSMC), Micron Technology, Cisco Systems, Juniper Networks, Marvell Technology Group, Amazon, IBM, and Intel.
While most generative AI companies remain in the venture capital stage, there are investment opportunities available for those interested in the sector. Investors may consider AI-focused exchange-traded funds (ETFs) or explore individual stocks with potential for growth in the AI market.
Frequently Asked Questions (FAQs) about investing in OpenAI and ChatGPT
When will OpenAI become publicly traded?
As of late-March 2024, OpenAI is not a publicly traded company. Investors seeking exposure to OpenAI may consider investing in Microsoft, which has a significant partnership with the company.
How is OpenAI funded?
OpenAI has raised approximately US$11.3 billion through multiple funding rounds since 2016. Key investors include Thrive Capital, Andreessen Horowitz, and Founders Fund.
What is the market value of ChatGPT/OpenAI?
As of February 2024, OpenAI is valued at US$80 billion. The company’s revenue reached US$2 billion in December 2023, placing it among the ranks of major tech firms like Google and Meta.
Does ChatGPT use Nvidia chips?
ChatGPT’s distributed computing infrastructure relies on servers equipped with powerful GPUs, with Nvidia GPUs preferred for their performance and support for Compute Unified Device Architecture (CUDA).
Will ChatGPT contribute to another GPU shortage?
It is unlikely that ChatGPT will contribute to a GPU shortage similar to those observed in the gaming and cryptocurrency mining sectors. The GPUs used for machine learning applications like ChatGPT differ from those used in gaming and mining operations.
Can ChatGPT predict stock movements?
A recent study conducted by the University of Florida suggests that advanced language models like ChatGPT have the potential to predict stock market movements using sentiment analysis. However, incorporating such models into investment strategies requires careful consideration and validation.
When can we expect ChatGPT 5?
OpenAI has filed a trademark application for ChatGPT-5, indicating ongoing development of the next iteration of the technology. While the exact release date remains uncertain, it is unlikely to occur before the third quarter of 2024.
