ChatGPT by OpenAI is one of the most recent technical advancements in the artificial intelligence (AI) sector.

The worldwide AI industry is already anticipated to expand at a compound annual growth rate of 38.1 percent, reaching US$1.59 trillion by 2030 – it’s difficult to determine how big of an influence OpenAI’s ChatGPT will have in this arena.

The developing technology represents a subset of the AI business known as generative AI – systems that may produce text, pictures, or sounds in response to human instructions.

The rising excitement surrounding (generative AI) has reached a frenzy the (venture capital) industry hasn’t seen in years,” according to Pitchbook venture capital market data. “The introduction of tools like as DALL-E 2, Stable Diffusion, and ChatGPT has attracted the attention of a wide range of investors by proving that generative AI is now ready to be used to a variety of commercial applications ranging from advertising and law to producing software code.”

There’s a lot of buzz surrounding generative AI technology, but can you afford to invest in OpenAI’s ChatGPT? The Investing News Network (INN) answers that question and more in this article.

What is OpenAI’s ChatGPT?

ChatGPT is a generative AI software programme created by San Francisco-based tech lab OpenAI that employs a machine learning approach called reinforcement learning from human feedback (RLHF) to replicate human-written conversations based on a wide range of user inputs. This type of software is more commonly referred to as an AI chatbot.

ChatGPT learns language by reading materials from the internet, such as encyclopaedias, novels, academic publications, and blogs. Based on this training, the AI chatbot creates text by predicting which words (or tokens) may be combined to give the most appropriate answer.

More than a million people engaged with ChatGPT within the first week of its launch for free public testing on November 30, 2022. Many were in awe of the chatbot’s seemingly natural language capabilities, not only in terms of understanding questions, but also because of its human-like responses. In essence, users felt as if they were having a conversation with a real human being.

Besides being an excellent conversation partner, ChatGPT can write engaging short stories, moving poetry and catchy song lyrics.

Elon Musk’s relation with OpenAI.

How is Elon Musk related to open AI?

OpenAI was formed in 2015 by current CEO Sam Altman, Elon Musk of Tesla (NASDAQ:TSLA), and other prominent investors such as venture capitalist Peter Thiel and LinkedIn co-founder Reid Hoffman. Musk stepped down from the board of directors of OpenAI in 2018 to focus on Tesla and its development of autonomous car technology.

A few days after ChatGPT became available for public testing, Musk turned to Twitter to announce, “ChatGPT is terrifying excellent. We’re not far from dangerously powerful AI.” On the same day, he stated that Twitter has denied OpenAI access to its database, preventing it from using it for RLHF training. “OpenAI was founded as open-source and non-profit,” he explains. Neither is true anymore.”

Is ChatGPT innovative or just a fad?

Is ChatGPT a game-changing invention or simply another hyped-up tech craze that will go away like Google Glass or the Segway? It may be too soon to tell, but as with any new technology, there will be kinks to work out.

One of the most difficult flaws to solve before ChatGPT can be widely implemented with confidence is the chatbot’s proclivity to react with “plausible-sounding yet wrong or nonsensical replies,” says OpenAI. Note that the words it chooses to weave together in a response are predictions – not as flawed as plain guesses, but nevertheless faulty.

ChatGPT does not always deliver the correct answers, from fundamental math to medical facts – a flaw that can have catastrophic real-world ramifications. The technology might be used to disseminate false information, conduct phishing email scams, or create dangerous malware.

Furthermore, the AI-based technology is susceptible to racial and gender prejudices. This language learning methodology has not only contributed to the human-like quality of its replies, but it has also picked up on some of humanity’s flaws.

“ChatGPT was trained on the collective writing of people throughout history and in the present. This means that the same biases that present in the data might arise in the model as well,” argues Garling Wu, staff writer for online technology newspaper MUO.

Teachers are also concerned that the technology would lead to an increase in academic dishonesty, with pupils utilising ChatGPT to compose essays or do science coursework.

“Teachers and school officials have been trying to detect pupils using the application to cheat, and they are worried about the damage ChatGPT may wreak on their lesson plans,” says Kevin Roose of the New York Times.

Notwithstanding these reservations, additional revisions of ChatGPT are anticipated, ideally without the aforementioned flaws, as OpenAI has the support of tech behemoth Microsoft.

Microsoft’s investment in OpenAI: Why?

According to New York Times technology writers Cade Metz and Karen Weise, Microsoft has spent at least $3 billion in OpenAI since 2019 to assist the modest tech business in developing its ultra-powerful AI chatbot.

In 2023, Microsoft plans to invest considerably more in OpenAI. In mid-January, the firm said that as part of the third phase of its cooperation with OpenAI, it will make a “multiyear, multibillion-dollar investment.”

Although Microsoft has not disclosed the amount of its current investment, speculations suggest that US$10 billion is on the table. According to Forbes, OpenAI is now valued at US$29 billion, so Microsoft’s US$10 billion investment would be significant.

What will Microsoft gain from its investment? Since OpenAI formally licenced its technology to Microsoft in 2020, it appears the tech giant is confident that developments in generative AI would raise profits for its Azure cloud computing company. Likewise, Pitchbook has called the acquisition a “extraordinary milestone” in the history of generative AI technology.

What is Google’s Bard AI?

While ChatGPT has received a lot of attention, it is far from the only chatbot available.

Importantly, Alphabet (NASDAQ:GOOGL) subsidiary Google plans to release its ChatGPT competitor in the first half of 2023. The chatbot, known as Bard AI, has been in development for two years and reached the testing phase in early February. Eventually, the AI technology will be included into Google Search.

Google’s Language Model for Conversation Apps serves as the foundation for Bard (or LaMDA). Sundar Pichai, CEO of Google, has called Bard a “experimental conversational AI service” that “seeks to integrate the depth of the world’s information with the power, intelligence, and creativity of our massive language models.”

Like with ChatGPT, users can enter a query, request, or prompt, and Bard will respond in a human-like manner. One advantage that Bard may have over ChatGPT is that the latter uses data until 2021, but the former may get up-to-date information online.
Yet, Bard’s capacity to access current data hasn’t kept it from committing ChatGPT’s worst blunder: boldly proclaiming disinformation as reality. According to The Verge, Google’s Bard “made a factual error in its very first presentation” when questioned about fresh discoveries from the James Webb Space Telescope. The inaccuracy was quickly identified by astronomers and scientific journalists.

But, hey, it’s human to make mistakes. And Google says it is dedicated to assisting Bard in learning from its mistakes.

Which stocks will gain the most from AI chatbot technology?

Which equities are expected to benefit from developments in the area, other from those directly related to generative AI technology?

AI chatbot technology has an indirect impact on various industries, including semiconductors, network equipment providers, cloud providers, central processing unit makers, and internet of things.

Among the publicly listed corporations in these industries are:

  • Graphics processing unit leader NVIDIA (NASDAQ:NVDA)
  • Taiwan Semiconductor Manufacturing Company (TPE:2330), a favorite of Warren Buffet’s
  • Computer memory and data storage producer Micron Technology (NASDAQ:MU)
  • Digital communications firm Cisco Systems (NASDAQ:CSCO)
  • Networking products provider Juniper Networks (NYSE:JNPR)
  • Semiconductor producer Marvell Technology Group (NASDAQ:MRVL)
  • Cloud-computing firm Amazon Web Services (NASDAQ:AMZN)
  • Bluechip multinational technology company IBM (NYSE:IBM)
  • The world’s largest semiconductor chip manufacturer by revenue, Intel (NASDAQ:INTC)

Can you invest in OpenAI now?

So, are you willing to invest in OpenAI? The firm does not yet have a publicly traded stock; but, if Microsoft acquires a significant stake in the company, investors will be able to have indirect exposure to OpenAI by acquiring Microsoft stock.

Those wanting direct exposure should keep an eye out for news of an initial public offering (IPO). There are no plans for an OpenAI IPO as of late January 2023, although the Wall Street Journal reported on January 5 that the AI lab is in negotiations with venture capital companies to sell at least $300 million in current shares in the business.

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