Before ChatGPT, many of us had the faintest idea of what artificial intelligence (AI) was about. For some, AI was just another buzzword people who wanted to sound tech-savvy threw around. But things have since turned a corner. ChatGPT has given us a glimpse into what AI offers.
The powerful capabilities of ChatGPT have attracted individuals and businesses, making it the fastest-growing consumer app in history, with 100 million users monthly. According to a 2022 report, its parent company, Open AI, gets about 1.8 billion monthly visitors on its website. The AI startup is also on track to generate $1 billion+ in annual revenue less than a year from launch.
One thing is clear - with the popularity of ChatGPT, its pioneering status, and the valuation of its parent company, we have a good investment opportunity on our hands.
But the question remains: Can I invest in Chat GPT, and how to invest in ChatGPT?
Explore ChatGPT with No Login Requirement
Before you make a crucial decision on whether to invest in ChatGPT, it's important to have a firsthand experience of its powerful functionality. Try this no-login-required ChatGPT to access this chatbot with more freedom and explore its capabilities.
Can You Invest in ChatGPT?
Sadly, the answer is no. The chatbot or its parent company, OpenAI, is yet to make an IPO. IPO, short for Initial Public Offering, refers to the process by which a private company offers its stocks and shares for sale to the public.
Going public can help a company access more investors, thus raising more resources to repay debts, grow, update products, and even create newer projects. OpenAI, rather than go public, has been privately funded by some backers. Some include Microsoft and VC firms like Andreesen Horowitz and Sequoia Capital. Microsoft’s investment is believed to be about $10 billion, while the VCs put together have invested just over $300 million.
Is ChatGPT publicly traded? No. Though it is impossible to buy ChatGPT’s shares on public stock exchanges, one can indirectly invest in it by buying into its backers and OpenAI partner companies. You can also invest in other fast-growing AI chatbots that may benefit from the current spotlight on chatbots.
How Do You Invest in ChatGPT?
While we wait for ChatGPT to go public, there are a number of companies you can invest in whose stock is likely to benefit from ChatGPT’s growth. Some of them include Microsoft, NVIDIA, Alphabet, Amazon, JP Morgan Chase, etc.
Nvidia
Nvidia’s Graphic Processing Units (GPU) are used to train AI language models like ChatGPT and process large amounts of data. The company currently has a market cap of $1 trillion and a price-to-earnings (p/e) ratio of 160, calculated as the company’s stock price divided by earnings by share.
Nvidia is seemingly gaining from the ChatGPT hype already, with its market cap up from $728 billion and p/e ratio down from 160 in May 2023. Generally, the lower the p/e ratio, the better. One benefit of investing in Nvidia is that it will likely outlast the ChatGPT hype since its GPUs are equally important PCs, machine learning tools, and other tech products.
Microsoft
Microsoft is one of the biggest backers of ChatGPT. Their partnership involves a unique deal, making Azure the exclusive provider of cloud services to Open AI. The company also updated its Edge browser and Bing search engine with OpenAI’s built-in language model. According to a blog post from Microsoft, this model is customized specially for search and is more powerful than ChatGPT.
According to a Bloomberg report, Microsoft is narrowing its gap behind Apple as the world’s largest stock. The blog post reports that investors see better growth with the tech giant.
Alphabet
Alphabet, Google’s parent company, is also heavily invested in AI products and should benefit from the AI boom. They recently launched their own natural processing tool called Bard, which is a direct competitor with ChatGPT.
They have invested over $300 million in Anthropic, the brainchild of some former researchers at OpenAI. This investment gives them a 10% stake in the company.
Google and Alphabet have also founded DeepMind, a research unit committed to advancing AI innovation. While investment in Google may not be a direct investment in ChatGPT, it is an investment in the AI world and should produce good returns on investment with advancements in AI.
JPMorgan Chase
The financial institution makes this list for making a ‘financial clone’ of ChatGPT. Their chatbot, known as IndexGPT, was designed to streamline the client experience by helping people select assets and even provide financial advice to users. It will be used for investment consulting, compiling, and updating security value indexes.
All indications show it is a good buy at the moment. It has gained 26.6% in the past year and sits at no.2 position on the Zacks rank.
What Are the Risks Involved in Investing in ChatGPT-related Stocks?
Ethical considerations
Recently, there have been concerns about privacy, security, misuse, and regulatory compliance with the deployment of ChatGPT. These concerns could lead to multiple legal suits, which may affect the reputation and performance of partnership companies.
Dependency on improvement
The growth of AI-related stock is heavily dependent on the technology’s improvement. Any challenge in addressing these tool’s limitations can affect investors' sentiment and reduce returns potential.
There are also other AI-invested companies that might go public soon and are worth looking into. Remember, the earlier you get in on the action, the better. One example is HIX Chat. Let’s look at HIX Chat, a good ChatGPT alternative, and what you can do with it.
HIX Chat: A Better ChatGPT Alternative
HIX Chat is a smart AI chatbot with limitless capabilities. It is powered by GPT-3.5 and GPT-4, the same language models used in training ChatGPT. However, it can generate more accurate content and more helpful services than ChatGPT for a lower price. Here are some of its features:
Provides real-time updates and up-to-date information
ChatGPT is based on pre-trained data, so its knowledge is limited to information available up to 2021. HIX Chat, on the other hand, has web access, thus, can help you get updated information from reliable online sources.
Can be accessed via web app or browser extension
Users can interact with HIX Chat via the web, which is accessible on any internet-enabled device. It can also be integrated into the Google Chrome browser via a free, downloadable extension.
Highly versatile
This chatbot is incredibly versatile and has answers to all types of questions you may have. This includes general topics and specific subject areas or disciplines. Its advanced natural language processing capabilities allow it to correctly interpret questions and provide relevant answers.
Reads PDFs and answers questions based on their contents
HIX Chat has the capacity to read, understand, and interpret the contents of any PDF you upload on its servers. You may then ask questions related to the PDF’s contents. The AI chatbot processes the queries, searches for relevant answers within the document, and provides you with those. It can also generate a summary of the PDF if asked to.
Summarizes YouTube contents
HIX Chat can provide you with a quick overview of any YouTube video - once you provide its URL - without requiring you to watch the entire video. This can be incredibly helpful if you need to know what a video discusses before committing to watching the entire clip.
Answers questions related to webpages
When you provide HIX Chat with a webpage’s URL, it visits the webpage using its web access capabilities and retrieves the page’s content, including text, images, and other media formats. Then, it extracts relevant information and generates answers for any of your questions.
Supports over 30 languages
HIX Chat can read, understand, and respond to queries in 30+ languages, including not-so-popular ones. This makes it possible to extract information from original, relevant sources that may be written in your native tongue.
Conclusion
Since ChatGPT or OpenAI are not publicly traded, buying stocks in the product or its parent company is impossible. However, you can buy stocks in partner companies and others invested in AI products. But before committing your money, you should watch out for important metrics like price-to-earnings ratio, market cap, and annual profit margin.
