Both ChatGPT and OpenAI, the firm that developed it, are not listed on any stock exchanges. There are several ways to learn about ChatGPT, though.
Microsoft (MSFT 1.58%), the corporate behemoth that has a strategic alliance with OpenAI since 2019 and has spent billions of dollars in the AI firm, is the most direct route. Following the launch of ChatGPT in early 2023, Microsoft made a $10 billion investment in OpenAI, demonstrating the company’s faith in the technology’s potential and its conviction that AI will be the next big computer platform.
ChatGPT is the main reason generative AI has become the most talked-about technology since smartphones. From CEOs to technologists to regular consumers, the technology has amazed everyone with its ability to do a wide range of tasks, such as composing computer code and poetry or breaking down complicated topics into manageable phrases. With frequent upgrades, it keeps improving and has even passed difficult tests for law school, medical licensing, and MBA programs.
As user-friendly as Google Search, ChatGPT (an acronym for “Chat Generative Pre-Trained Transformer”) responds to queries immediately through a straightforward chat interface. The free AI chat interface, which launched in November 2022, attracted 100 million users in only two months and has the potential to upend a variety of businesses, including content creation and internet search. Currently, 400 million people utilize it every week.
We’ll go over the ramifications for ChatGPT and generative AI chatbots in general in this post, along with how investors may learn more about it and whether or not to invest in ChatGPT.
Tips for Investing in ChatGPT
Both ChatGPT and OpenAI, the firm that developed it, are not listed on any stock exchanges. There are several ways to learn about ChatGPT, though.
Microsoft (MSFT 1.58%), the corporate behemoth that has a strategic alliance with OpenAI since 2019 and has spent billions of dollars in the AI firm, is the most direct route. Following the launch of ChatGPT in early 2023, Microsoft made a $10 billion investment in OpenAI, demonstrating the company’s faith in the technology’s potential and its conviction that AI will be the next big computer platform.
You can also learn about ChatGPT from Nvidia (NVDA 1.28%). One of the most valuable semiconductor firms in the world, Nvidia is the top manufacturer of graphics processing units (GPUs). In essence, its GPUs and accelerators serve as the fundamental components of artificial intelligence, analyzing vast volumes of data and training sophisticated language models like ChatGPT. Due to their high demand, they are frequently in short supply, despite being an essential part of many machine learning models. In the data center GPU industry, Nvidia is the market leader and has fought rivals like Advanced Micro Devices (AMD -0.45%) and Intel (INTC 2.67%).
For those who want to learn more about ChatGPT and the larger generative AI revolution, Arm Holdings (ARM 0.31%) is also a solid option. Nvidia and Arm are close partners, and Arm licenses its CPU designs to Nvidia and other partners who value their efficiency.
Because Arm’s CPU designs are so good at saving power, they are found in 99 percent of smartphones and are increasingly being employed as AI data center components. The power requirements of running AI apps like ChatGPT are high, and as that sector grows, so will the need for Arm’s CPUs.
Exchange-traded funds (ETFs) that provide exposure to stocks associated with ChatGPT and generative AI are also available.
1. The Microsoft
Microsoft is mostly recognized as a multinational technology conglomerate. Its Windows operating system, Azure cloud infrastructure service, Office software suite subscriptions, Surface hardware, Xbox gaming products, and the professional social network LinkedIn are just a few of the many products that generate revenue for the company. But since Microsoft has placed significant bets on OpenAI and ChatGPT, the corporation has recently drawn attention to its strategic alliance with OpenAI. Satya Nadella, the CEO of Microsoft, has referred to artificial intelligence (AI) as the next big computing platform. He has already used ChatGPT and OpenAI’s capabilities in a number of products, such as Azure and Copilot, Microsoft’s new AI assistant.
Given Microsoft’s success with Azure OpenAI, its collaboration with ChatGPT is also yielding improvements in its AI relationship. Azure OpenAI is currently used by over 65% of Fortune 500 companies, and those features boosted Azure revenue by 6% in the December 2024 quarter. By December 2024, Microsoft’s AI revenue run rate had surpassed $13 billion, representing a 175% increase from the previous year. Microsoft is the greatest option if you’re searching for a corporation that has the strongest connections to OpenAI and ChatGPT. But because the corporation is so large, ChatGPT only affects a comparatively small portion of the business.
2. The Nvidia
Over the past ten years, Nvidia’s stock has surged as its graphics processing chips have become essential components of everything from artificial intelligence to self-driving cars and gaming. AI has high processing requirements, and Nvidia’s chips can manage the burden more effectively than those of its rivals. Over the past year, demand for its chips has increased dramatically, and it continues to do so as the company sells the building blocks for AI platforms. Since its processors are required by cloud infrastructure businesses and others to run AI models, Nvidia has emerged as the largest beneficiary of the AI boom more than a year after ChatGPT’s debut. Revenue increased by over three times in several quarters.
10,000 Nvidia GPUs were reportedly utilized to train ChatGPT, according to UBS (UBS 0.27%), and some analysts believe that OpenAI’s chatbot currently uses 30,000 of those GPUs. That figure will probably increase as ChatGPT expands. The CEO of OpenAI, Sam Altman, has frequently commended Nvidia’s hardware. Additionally, OpenAI is collaborating closely with Nvidia, Microsoft, and Arm on the new Stargate Project, a $500 billion initiative to support AI R&D in the US and construct new AI data centers. Tens of thousands of Nvidia GPUs and additional Nvidia AI software tools are being used in a huge cloud AI machine that Nvidia and Microsoft are building together.
If you want an investment that will profit from the development of artificial intelligence, Nvidia appears to be a smart choice given its strength in AI computing capacity.
3. Holdings of the arms
In recent months, Arm Holdings’ growth rate has accelerated as demand for AI starts to flow. The business benefits from its low-power CPU architecture, which is more effective than AMD’s and Intel’s X86 substitute. By licensing its designs and then collecting royalties once the goods are sold, Arm has a distinctive business strategy. As an illustration of its growing demand in the AI era, Microsoft is one of its clients; it employs Arm architecture for its new Cobalt CPU, which executes general-purpose and cloud-native applications.
ChatGPT is the main reason generative AI has become the most talked-about technology since smartphones. From CEOs to technologists to regular consumers, the technology has amazed everyone with its ability to do a wide range of tasks, such as composing computer code and poetry or breaking down complicated topics into manageable phrases. With frequent upgrades, it keeps improving and has even passed difficult tests for law school, medical licensing, and MBA programs.
