Chat GPT Stock Price: How To Best Invest in 2024

As interest in AI technology surges, many investors are curious about the current Chat GPT stock price and its potential impact on the market.

Generative AI has emerged as a groundbreaking technology, capturing the world’s attention like no other since the advent of smartphones. At the forefront of this technological marvel is ChatGPT, a generative pre-trained transformer that has revolutionized the way we interact with AI. ChatGPT’s prowess in performing a plethora of tasks, from crafting poetry to coding, and even acing professional exams like law, medicine, and MBA programs, has left everyone from CEOs to tech gurus in awe.

What is ChatGPT?

ChatGPT, or Chat Generative Pre-trained Transformer, represents a monumental leap in AI chatbot technology. Developed by OpenAI, this large language model-based chatbot offers an array of features, enabling users to tailor conversations to their specific requirements. This versatility makes ChatGPT an invaluable tool for understanding and generating natural language.

Launched with much fanfare on November 30, 2022, ChatGPT quickly became a sensation, amassing an impressive 100 million users within just two months. Its unprecedented speed in attracting a vast user base, outshining even the most popular technology applications in history, showcases its revolutionary impact.

The chatbot’s proficiency in producing responses that closely mimic human interaction underscores its role as a pioneering force in the sphere of consumer-focused generative AI. This remarkable advancement in AI technology suggests the onset of a transformative era, reshaping the technological landscape.

Its user-friendly interface, comparable to Google Search, and its free access have significantly contributed to its widespread popularity. ChatGPT’s rapid growth and potential to disrupt sectors from internet search to content creation have made it a focal point of interest for investors and technology enthusiasts.

Photo by Hans Eiskonen on Unsplash/reworked

Chat GPT Stock Price: Indirect Opportunities in AI

Investing in ChatGPT

What’s Chat GPT Stock Price? While Chat GPT itself is not directly tradable, understanding the Chat GPT stock price trends of related companies offers a glimpse into the AI industry’s growth.
Here we will highlight some of the alternative ways to invest in this AI phenomenon.

Microsoft, a major collaborator with OpenAI, presents a viable option for investors to indirectly participate in ChatGPT’s success. Investing in Microsoft’s stock offers a share of the AI chatbot action, thanks to its substantial stake in ChatGPT.

Other notable investment choices include Nvidia, which stands to benefit from the growing demand for advanced computing power necessary for AI technologies.

Perion Network is also a potential candidate, especially with its new Bing search engine that integrates AI capabilities.

Why Invest in AI-Powered Company Stocks?

The AI market, including generative technologies like ChatGPT, is projected to exceed £1 trillion by 2032. The adoption of AI tools, particularly language-based models, has skyrocketed, becoming a top-used AI capability by businesses. These tools offer benefits such as enhanced productivity, cost reduction, and continuous customer support. The potential of ChatGPT and similar technologies has thus sparked considerable investor interest.

Why Investing in AI-Powered Company Stocks Can Be Lucrative

The AI market, with generative technologies like ChatGPT, is expected to surpass £1 trillion by 2032. Businesses increasingly adopt AI tools for productivity enhancement, cost reduction, and continuous customer support. Consequently, investor interest in AI and ChatGPT-related technologies has spiked, recognizing their potential in various sectors.

Indirect Investment Strategies in OpenAI and AI Sector

Investing in partner companies like Microsoft, deeply involved in AI initiatives with OpenAI, offers indirect engagement with the AI landscape.

AI-Focused Exchange Traded Funds (ETFs) provide another approach, with several ETFs focusing on AI-centric companies. Additionally, venture capital and angel investing in AI start-ups offer high-reward potential, though with higher risk. Public companies heavily involved in AI research and development also present investment opportunities.

Microsoft and NVIDIA are pivotal players in the AI landscape, with NVIDIA’s cutting-edge GPUs and the CUDA platform playing a crucial role in advancing AI development. Alphabet Inc., via its subsidiaries such as DeepMind and Google Cloud, is making significant strides in AI research. Meanwhile, Amazon, Intel, and Tesla, each with their distinct AI projects, are not only contributing to the industry but also stand as key influencers in the realms of AI and Machine Learning.

Microsoft: A Direct Link to ChatGPT Investment

Microsoft‘s partnership with OpenAI, involving significant investments and AI capability integration, presents the most direct investment avenue in ChatGPT. Microsoft has confirmed a significant investment in ChatGPT, an AI language model developed by OpenAI.

The investment is rumored to be around $10 billion, and it represents a multi-year commitment to extend the partnership between Microsoft and OpenAI. This investment is a strategic move by Microsoft to accelerate its position in the AI landscape and to compete with other tech giants such as Google and Apple.

The partnership also involves Microsoft Azure continuing as the exclusive cloud provider for ChatGPT. ChatGPT is a generative AI model that has gained attention for its ability to generate human-like text based on prompts. This investment underscores Microsoft’s commitment to advancing AI technologies and its ambition to remain at the forefront of generative artificial intelligence.

Alphabet and NVIDIA: Diversifying AI Investment

Alphabet’s AI initiatives, like its chatbot Bard, and NVIDIA’s strategic positioning in AI technologies offer diversified investment opportunities in AI.

Alphabet, Google’s parent company, has been actively involved in advancing artificial intelligence (AI) through various initiatives and investments. One of the notable AI initiatives is the development of Bard, an experimental conversational AI service powered by LaMDA. Bard is designed to engage in natural and informative conversations, showcasing Alphabet’s commitment to enhancing AI capabilities in conversational settings[1].

In addition to its internal AI developments, Alphabet has made strategic moves to strengthen its AI research capabilities. For instance, the company announced the combination of Google Brain and DeepMind, two prominent AI research units, to further bolster its AI research efforts. This consolidation is aimed at enabling Alphabet to pursue “multimodal” AI, similar to OpenAI’s GPT-4, which can respond to both text and image inputs to generate new content[2].

Alphabet’s deep involvement in AI is evident across various domains, including healthcare, automotive, and government contracts. The company’s relentless pursuit of AI innovation has positioned it as a global AI powerhouse, with a strong focus on leveraging machine learning and AI to drive advancements in diverse areas, from YouTube recommendations to driverless cars and healthcare diagnostics[3].

These developments underscore Alphabet’s significant commitment to advancing AI technologies and its ambition to remain at the forefront of the AI landscape. The company’s strategic investments and internal initiatives reflect its dedication to harnessing the potential of AI to drive innovation and create meaningful impact across industries.

NVIDIA has been deeply involved in the advancement of artificial intelligence (AI) through various initiatives and investments. The company has developed an advanced AI platform for the enterprise, known as NVIDIA AI Enterprise, which powers the end-to-end workflow of AI and accelerates the data science pipeline.

NVIDIA has also made significant strides in the field of generative AI, offering cloud services for creating large language and visual models, such as the NVIDIA NeMo™ language service and the NVIDIA Picasso image, video, and 3D service. These services enable enterprises to build proprietary, domain-specific, generative AI applications for various purposes, including intelligent chat and customer support, professional content creation, and digital simulation.

Additionally, NVIDIA has established itself as a leader in producing chips tailored for AI tasks, building a nearly impregnable lead in this domain over more than 10 years. The company’s commitment to AI development and its continuous innovation in AI hardware and software have solidified its position as a key player in the AI landscape.

Platforms like eToro or Fidelity enable investors to buy shares in these companies, allowing indirect participation in AI growth.

INTEL

Intel is deeply involved in the field of artificial intelligence (AI) across various domains. The company offers a comprehensive development and deployment ecosystem combined with a heterogeneous portfolio of AI-optimized hardware. Intel‘s AI software portfolio includes order of magnitude optimizations for popular frameworks and provides tools and resources to prepare, build, deploy, and scale AI solutions.

The company is committed to advancing AI technology responsibly, utilizing rigorous, multidisciplinary review processes throughout the development lifecycle and establishing diverse development teams to reduce biases. Intel also collaborates with industry partners to mitigate potentially harmful uses of AI.

Additionally, Intel is dedicated to responding to the global AI skill gap with programs like AI for Youth and AI preparing students for the digital revolution. The company’s efforts in AI development are aimed at enabling an AI everywhere future through its portfolio of AI reference kits, which help developers and data scientists innovate faster in various domains such as health and life financial services, manufacturing, and retail.

Intel’s commitment to AI is evident in its continuous work to advance the design and manufacturing of semiconductors to address global challenges and transform business and society for the better.

Exploring Other Investment Avenues: Perion Network

Investment opportunities extend beyond Microsoft. Nvidia, a leader in advanced computing power, is pivotal for AI technologies and stands to benefit significantly from the sector’s growth.

Perion Network, with its AI-integrated Bing search engine, emerges as another potential candidate for investment.

Perion Network, an ad tech company, has been actively involved in leveraging artificial intelligence (AI) and generative AI, particularly through its partnership with Microsoft’s Bing search engine. The company’s technology is based on using AI and machine learning to deploy tens of thousands of combinations of advertising and layout, as well as a search monetization engine.

Perion has also integrated generative AI, such as ChatGPT, to create text, media response prompts, and streamline communication, signaling a significant advance in user engagement and content creation.

The company’s strategic partnership with Microsoft’s Bing search engine has positioned it to benefit from the rollout of new versions powered by ChatGPT, further solidifying its involvement in the AI space. This integration has the potential to drive revenue growth for Perion, making it a notable player in the AI and ad tech sectors.

Perion Network has also made several acquisitions in the AI space to strengthen its position and expand its capabilities. Some of the companies it has acquired include:

Content IQ: This acquisition has enabled Perion to enhance its capabilities in content monetization and optimization, further strengthening its position in the digital advertising space.
Pub Ocean: The acquisition of Pub Ocean has bolstered Perion’s presence in the digital publishing space, providing innovative solutions and expanding its offerings in the digital advertising sector.
Vidazoo: The acquisition of Vidazoo, a video advertising platform, has allowed Perion to tap into the rapidly growing video advertising market, further expanding its portfolio of advertising solutions.

Advancing AI: Diverse Investment Opportunities Beyond ChatGPT

Tesla, under the visionary leadership of Elon Musk, has made groundbreaking advancements in AI, particularly through its self-driving car technologies.

Tesla has been heavily involved in the development and deployment of AI in various domains, including automotive and robotics. The company has integrated AI into its cars since its inception, developing features such as Autopilot, which have the potential to enhance the driving experience and improve energy efficiency.

Tesla’s approach is based on advanced AI for vision and planning, supported by efficient use of inference hardware, and the company has been a leader in the development and deployment of autonomy at scale in vehicles and robots.

Additionally, Tesla has been working on early-stage robotics projects and has developed powerful AI supercomputers like Dojo to advance its AI and robotics capabilities. Elon Musk has expressed a strong desire for increased voting control in Tesla, especially as the company advances in the AI and robotics sectors. These efforts underscore the critical nature of AI in Tesla’s broader business strategy.

Although not directly linked to ChatGPT, Tesla’s strides in AI demonstrate the technology’s vast capabilities and hint at possible cross-collaboration and growth opportunities in the wider AI industry.

C3.ai stands out as a leading provider of enterprise AI solutions, offering AI-driven applications that transform business operations.

C3.ai is a leading enterprise AI software provider, focusing on building enterprise-scale AI applications and accelerating digital transformation. The company has partnered with leading cloud, technology, and services companies to solve complex business problems with patented AI and IoT.

C3 AI has been working with generative AI long before the term “large language model” became common, and its unique implementation of generative AI benefits from its proven enterprise AI technology, developed over more than 14 years and roughly $1.5 billion.

The company’s CEO, Thomas Siebel, has emphasized efforts to enhance data retrieval and analysis efficiency, enabling rapid user onboarding, and C3 AI’s stock has surged, driven by robust AI product demand. C3.ai’s involvement in the AI sector spans various applications, including network reliability, fraud detection, inventory management, supply chain optimization, and energy efficiency

As a company dedicated to AI, C3.ai plays a significant role in the development and adoption of advanced AI technologies, contributing to the overall growth of the sector.

Meta Platforms, previously known as Facebook, has also been a major player in the AI landscape. Its AI division, FAIR (Facebook AI Research), is committed to advancing state-of-the-art AI technologies, with a focus on enhancing the capabilities of its various platforms.

Meta Platforms, formerly known as Facebook, has been deeply involved in the development and application of artificial intelligence (AI) across various aspects of its business. Meta AI is an academic research laboratory focused on generating knowledge for the AI community, with a particular emphasis on improving augmented and artificial reality technologies.

The company has integrated AI into its social media network to enhance user experiences, personalize content feeds, and provide AI-powered recommendations for groups to join, among other features. Meta has also been investing in advanced AI research and infrastructure, such as developing its own AI inference accelerator and working on early-stage robotics projects.

Additionally, Meta has been leveraging generative AI to revolutionize advertising, chat, image generation, and natural language processing, further demonstrating its deep involvement in AI. Mark Zuckerberg, the founder of Meta Platforms, has pivoted his focus to AI, aiming to build products and services on top of AI models to further the company’s legacy. These efforts underscore Meta’s significant commitment to and investment in AI across its various platforms and services.

Apple, known for its Siri voice assistant technology, is actively expanding its AI capabilities. This expansion includes not only in-house research but also strategic investments and acquisitions, positioning Apple as a notable alternative for investing in the AI sector.

Apple has been heavily involved in the development and deployment of artificial intelligence (AI) across various domains. The company has focused on machine learning infrastructure, targeting acquisitions of leading talent and companies to bring machine learning capabilities to its products and services. Apple has acquired more than two dozen AI companies and integrated their technologies into its computers, watches, streaming services, operating systems, and mobile applications.

The company has also emphasized the development of on-device AI technologies, including animatable avatars and language models, to enhance user experiences and improve its products. Additionally, Apple has been working on generative AI technology and has been preparing to develop features for its full range of devices.

The company’s practical approach to AI involves sophisticated processing on its devices instead of relying heavily on the cloud, allowing it to adapt to changes and new techniques. Apple’s involvement in AI extends to various applications, including improved iPhone autocorrect, animatable avatars, and language models, showcasing its deep commitment to advancing AI technologies across its product ecosystem.

AI-focused ETFs

AI-focused ETFs specifically target companies involved in the development of new products and technological improvements related to artificial intelligence (AI). These ETFs may also have at least 25% of their portfolio exposure to companies that spend large amounts on AI research and development. They utilize AI methodologies to select individual securities for the fund, or they invest in companies that are expected to benefit significantly from the increased adoption and utilization of AI. Examples of such ETFs include the iShares Robotics and Artificial Intelligence Multisector ETF (IRBO), the First Trust Nasdaq Artificial Intelligence & Robotics ETF (ROBT), and the WisdomTree U.S. AI Enhanced Value Fund (AIVL).

Investing in AI-focused ETFs can be a way to gain exposure to a broad range of the best AI companies without the need to research and choose individual stocks. Some of the best AI ETFs for 2024 include:

Global X Robotics & Artificial Intelligence ETF (BOTZ) with $2.48 billion in assets under management and an expense ratio of 0.69%.
Roundhill Generative AI & Technology ETF (CHAT) with an expense ratio of 0.75%.
iShares Robotics and Artificial Intelligence Multisector ETF (IRBO) with an expense ratio of 0.47%.

These ETFs hold a diversified basket of stocks from across the AI industry, offering exposure to a broad spectrum of companies driving and benefiting from AI advancements. It’s important to consider your investing goals and pick an ETF that matches your strategy. Additionally, you’ll need a brokerage account to invest in AI ETFs.

US Index Funds

Finally, US index funds present a low-cost investment option, given the dominance of mega-cap companies like Microsoft, Alphabet, and NVIDIA in major US stock market indices such as the S&P 500 and Nasdaq 100. These funds offer a straightforward way to invest in the burgeoning AI sector, including its advancements in language-based technologies like ChatGPT.

As a reminder, US index funds are investment funds that seek to track and replicate the performance of a specific index, such as the S&P 500 or the Dow Jones Industrial Average. These funds are not specifically focused on AI companies or AI research and development. Instead, they aim to provide broad market exposure and diversification across various sectors and industries.

AI-Powered ETFs

AI-powered ETFs utilize artificial intelligence (AI) as a method for stock selection. These funds take a more active approach to stock picking by using AI to analyze and select individual securities for the fund. They can adjust their investment strategies based on market data and are designed to move faster and learn more than traditional human-managed funds. Examples of AI-powered ETFs include:

QRAFT AI-Enhanced U.S. Large Cap Momentum ETF (AMOM)
ETFMG AI Powered Equity ETF (AIEQ)
AiLA Long-Short Agriculture Strategy ETF (OAIA)

Chat GPT Stock Price: Stocks — Photo by RDNE Stock project: https://www.pexels.com/photo/stock-report-on-black-surface-7947707/

Regular ETFs

Regular ETFs, on the other hand, do not use AI as a method for stock selection. Instead, they may track a specific index, sector, or industry. These ETFs offer exposure to a particular market segment or investment theme without using AI for stock selection. Some of the regular ETFs that are include:

ARK Autonomous Technology & Robotics ETF (ARKQ)
iShares Robotics and Artificial Intelligence Multisector ETF (IRBO)
Fidelity Select Technology Portfolio

The use of AI in ETFs is a relatively new and rapidly evolving field, and while AI-powered ETFs have shown promising performance, there are uncertainties around their long-term performance. Regular ETFs, on the other hand, follow more traditional investment strategies and do not use AI for stock selection.

The following ETFs focus on artificial intelligence (AI), robotics, and related technologies. These ETFs are designed to provide exposure to companies involved in the development and utilization of AI, robotics, automation, and other advanced technologies. They may invest in companies that are at the forefront of AI and robotics innovation, including those engaged in industrial and non-industrial robotics, automation, 3D printing, natural language processing, and autonomous vehicles.

While some of these ETFs may not be exclusively focused on AI, they include companies that are leaders in the technology industry, some of which are involved in AI development and deployment. Therefore, the common theme among these ETFs is their emphasis on investing in companies at the forefront of technological innovation, including AI and robotics.

VanEck Robotics ETF: This fund focuses on companies involved in the robotics, automation, and artificial intelligence industries.
Global X Robotics and Artificial Intelligence Thematic ETF: This ETF invests in companies that stand to benefit from increased adoption and utilization of robotics and AI, including those involved with industrial and non-industrial robotics, automation, 3D printing, natural language processing, social media, and autonomous vehicles.
Fidelity Select Technology Portfolio: While not exclusively focused on AI, this portfolio includes companies that are leaders in the technology industry, some of which are involved in AI development and deployment.

Risks of Investing in ChatGPT

Investing in AI and ChatGPT-related stocks carries its own set of risks. The primary challenge lies in the scarcity of publicly traded, pure AI companies. Consequently, investors looking to directly invest in ChatGPT may find limited options. Additionally, the surge in investor interest has inflated the valuations of related stocks, such as Microsoft and Alphabet, potentially leading to overvalued asset bubbles.

Conclusion: Balancing Enthusiasm and Caution in AI Investments

ChatGPT’s emergence as a leading AI tool signifies a significant shift in the technology landscape, drawing parallels with the early internet era in the 1990s. While direct investment in ChatGPT may not be feasible currently, indirect investment through related companies offers a gateway to being part of this AI revolution. However, investors should approach with a blend of enthusiasm and caution, keeping an eye on the realistic potentials and hype-driven risks of this rapidly evolving sector.

The emergence of ChatGPT and related AI technologies heralds a new chapter in technology, drawing parallels with the early internet era. While direct investment in ChatGPT is currently not an option, indirect investment through related companies offers a gateway to this AI revolution. However, investors should balance enthusiasm with caution, mindful of the realistic potentials and hype-driven risks in this rapidly evolving sector.

FAQs

Chat GPT Stock Price: What makes ChatGPT a significant investment opportunity despite its unavailability for direct investment?
ChatGPT represents a leap in AI technology with widespread applications, making it an intriguing area for investors. While direct investment in ChatGPT isn’t possible, its influence on related companies offers a unique investment opportunity in the burgeoning AI sector.

Chat GPT Stock Price: How does investing in Microsoft relate to ChatGPT?
Microsoft has made significant investments in OpenAI, the creator of ChatGPT. By investing in Microsoft, investors indirectly gain exposure to the advancements and potential success of ChatGPT and related AI technologies.

Chat GPT Stock Price: Can investing in NVIDIA be considered an investment in AI and ChatGPT?
Yes, NVIDIA’s GPUs and AI platforms are crucial for running complex AI models like ChatGPT. Investing in NVIDIA offers an indirect way to benefit from the growth in AI and generative language model technologies.

Chat GPT Stock Price: What are AI-focused ETFs, and why are they important for investors interested in AI technologies like ChatGPT?
AI-focused ETFs are exchange-traded funds that concentrate on companies involved in AI development, including those related to ChatGPT. They provide a diversified investment approach in the AI industry without the need to pick individual stocks.

Chat GPT Stock Price: Are there any risks associated with investing in companies related to AI technologies like ChatGPT?
Yes, risks include the rapid evolution of AI technology, potential regulatory changes, and market volatility. Overvaluation of AI stocks due to hype is also a potential risk that investors need to consider.

Chat GPT Stock Price: What role does Perion Network play in the AI sector and how does it relate to ChatGPT?
Perion Network, through its partnership with Microsoft’s Bing, which integrates AI capabilities, offers an investment opportunity in the growing field of AI and search technologies, indirectly related to developments like ChatGPT.

Chat GPT Stock Price: How does Tesla’s focus on AI make it a potential investment choice in the AI landscape?
Tesla’s advancements in AI, particularly in autonomous driving and robotics, make it a notable player in the AI field. While not directly linked to ChatGPT, Tesla’s AI initiatives indicate the broad applications and potential of AI technologies.

Chat GPT Stock Price: What should investors keep in mind when considering AI-focused ETFs for their portfolios?
Investors should consider the diversity of the holdings within the ETF, the sectors they cover in the AI field, and the associated risks and expenses. Understanding how these ETFs align with their investment goals and risk tolerance is also crucial.

Chat GPT Stock Price: How does Alphabet’s involvement in AI, through initiatives like Bard, present an investment opportunity?
Alphabet, with its significant AI research and projects like Bard, offers a diversified investment in the AI space, including aspects of natural language processing and machine learning, which are central to technologies like ChatGPT.

Chat GPT Stock Price: Can Apple’s AI developments be considered for investment in the AI sector?
Apple’s increasing focus on AI, through Siri and other in-house AI initiatives, makes it a viable investment option for those looking to gain exposure to the AI technology sector.

Chat GPT Stock Price: What are the top holdings of the top-performing AI ETFs?
Xtrackers Artificial Intelligence & Big Data UCITS ETF (XAIX): Includes major AI companies like Apple, Amazon, Meta, Nvidia, Microsoft, Alphabet, and Tesla.
L&G Artificial Intelligence UCITS ETF (AIAI): Holds significant positions in Apple, Amazon, Meta, Nvidia, Microsoft, Alphabet, and Tesla.
Global X Robotics & Artificial Intelligence ETF (BOTZ): Features well-known AI stocks such as Nvidia and Intuitive Surgical.

Chat GPT Stock Price: What specific AI projects is Meta Platforms working on?
Meta Platforms is developing a metaverse for intelligent healthcare and expanding generative AI research. Their AI initiatives focus on enhancing user experience on social media, improving metaverse realism, personalizing services, and improving advertising effectiveness with AI-enabled features like chatbots and virtual assistants.

Chat GPT Stock Price: How can investors identify promising AI companies for investment?
Investors should look for companies with robust AI research and development, a clear vision for AI application, and a proven track record of innovation. Monitoring partnerships, patents, and overall financial health are also important for assessing potential AI investments.

Chat GPT Stock Price: What are the top holdings of the top-performing AI ETFs?

Xtrackers Artificial Intelligence & Big Data UCITS ETF (XAIX): Includes major AI companies like Apple, Amazon, Meta, Nvidia, Microsoft, Alphabet, and Tesla.
L&G Artificial Intelligence UCITS ETF (AIAI): Holds significant positions in Apple, Amazon, Meta, Nvidia, Microsoft, Alphabet, and Tesla.
Global X Robotics & Artificial Intelligence ETF (BOTZ): Features well-known AI stocks such as Nvidia and Intuitive Surgical.

Chat GPT Stock Price: How To Best Invest in 2024

What is ChatGPT?

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