ChatGPT, OpenAI’s innovative language model, was launched on November 30, 2022, and remarkably reached a milestone of 100 million users within just two months after its inception.
This rapid adoption led to it being dubbed a “Google-Killer” due to its immense potential to disrupt various industries, including internet search and content creation. While the impact on the technological landscape was substantial, direct investment in ChatGPT is not possible, as neither it nor OpenAI is publicly traded.
However, investors seeking exposure to this groundbreaking technology have various channels available to them, allowing participation in the growth and influence of one of the most prominent advancements in the field of artificial intelligence.
In this post, we’ll reveal the two stocks for indirect investment in ChatGPT. Stay tuned to explore these opportunities!
1. Microsoft
Microsoft Corporation is a diversified global technology behemoth that has formed a strategic partnership with OpenAI, focusing on the development and utilization of ChatGPT technology.
In recent times, Microsoft’s strategic partnership with OpenAI, particularly focusing on ChatGPT, has captured attention in the tech industry. The company’s commitment to OpenAI and artificial intelligence as a whole is substantial, with CEO Satya Nadella labeling AI as the next significant computing platform. Microsoft has already integrated the capabilities of ChatGPT and OpenAI’s tools into various products, most notably Azure.
One of Microsoft’s most strategic applications of ChatGPT is in Bing, its search engine.
Nadella has identified a resurgence in the search engine competition and is keen on challenging Alphabet’s Google. He perceives the landscape in search as asymmetric, recognizing that any loss in market share for Alphabet is likely a gain for Bing, even though Alphabet’s position is such that it cannot afford to lose traction.
For investors interested in exposure to OpenAI and ChatGPT, Microsoft stands out as the most closely connected company.
However, it’s important to note that Microsoft’s vast size and diversified business encompass iconic products like the Windows operating systems, Azure cloud infrastructure service, subscription-based products like the Office software suite, as well as hardware such as the Surface and Xbox.
These diverse offerings mean that only a small portion of the company is directly linked to ChatGPT. Thus, while an investment in Microsoft does provide some exposure to this exciting technology, it’s within the context of a much larger and multifaceted organization.
2. Nvidia
Over the past decade, NVIDIA Corporation’s stock has seen substantial growth as its graphics processing units or GPUs have become an essential component in a diverse array of applications, ranging from gaming and self-driving cars to artificial intelligence.
AI, in particular, presents extraordinary computing demands that NVIDIA’s chips are uniquely positioned to handle, outpacing its competitors in efficiency and performance.
UBS has estimated that as many as 10,000 NVIDIA GPUs were used in the training of OpenAI’s ChatGPT, and some industry analysts now estimate that 30,000 of NVIDIA’s GPUs are being utilized to operate OpenAI’s sophisticated chatbot.
Further solidifying its standing in the AI arena, NVIDIA has collaborated with Microsoft to construct a colossal cloud AI computer, integrating tens of thousands of NVIDIA GPUs along with other specialized NVIDIA AI software tools.
One of NVIDIA’s standout products in the AI field is the Omniverse platform, which contributes to the company’s strength in AI computing power.
With these considerations in mind, NVIDIA appears to be a compelling AI stock to own for investors seeking opportunities that are well-positioned to benefit from the continued expansion and influence of artificial intelligence technology.
The Final Thought!.
ChatGPT and generative AI are on the verge of significantly changing many parts of our daily lives, such as our work, education, and entertainment.
Microsoft, with its diverse product range and strategic partnership with OpenAI, appears to be the most stable option among the opportunities. Its alignment with ChatGPT’s evolution positions it to profit from upcoming advances in generative AI technology.
NVIDIA, as well, is poised to benefit from the anticipated surge in demand for computing power, integral to AI’s growth.
Additionally, AI-focused ETFs could offer broader exposure to the burgeoning sector, and therefore, investors are strongly encouraged to conduct their own research in order to make informed investment decisions based on individual circumstances and goals.
