OpenAI’s ChatGPT represents one of the most recent technological advances in the field of artificial intelligence (AI). But is there a good reason to invest in a technology that has become so controversial?
This emerging technology represents a niche sub-sector of the AI industry known as generative AI: systems capable of generating text, images, or sounds in response to prompts provided by users.
According to Precedence Research, the global AI market is expected to grow at a compound annual growth rate (CAGR) of 19 percent, reaching 2.57 trillion dollars by 2032.
The exact impact of OpenAI’s ChatGPT on this industry is difficult to predict, but S&P Global suggested in December 2023 that the total revenue of the generative AI market as a whole will see a CAGR of 57.9 percent through 2028, rising from 3.7 billion dollars last year to 36.36 billion dollars in 2028
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ChatGPT Technology
ChatGPT, created by the San Francisco technology lab OpenAI, is a generative AI software application that uses a machine learning technique called human feedback reinforcement learning (RLHF) to emulate conversations written by human beings based on a wide range of user prompts.
ChatGPT’s AI learns language by training on texts collected from the Internet, including online encyclopedias, books, academic journals, news sites, and blogs. Based on this training, the AI chatbot generates text by making predictions about which words (or tokens) can be concatenated to produce
the most suitable response.
More than a million people interacted with ChatGPT in the first week of its launch for free public tests on November 30, 2022. Many were impressed by the chatbot’s apparently natural language abilities, not only in understanding questions, but also by its human-like answers. The users had the feeling that they were having a conversation with a human being
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In addition to being an excellent conversation partner, ChatGPT can write compelling short stories, develop compelling marketing materials, solve complicated math problems, and even create code in various programming languages.
The Controversy and the Successes of ChatGPT
Of course, OpenAI has also generated a lot of controversy, such as concerns about the destruction of jobs and targeted disinformation campaigns.
And let’s not forget the strange and sudden removal, albeit brief, of OpenAI CEO Sam Altman.
A
lot of lawsuits have come up. Several media outlets, including the New York Times, have filed copyright infringement lawsuits against OpenAI, and some of the plaintiffs are also seeking economic damages from public technology partner Microsoft (NASDAQ: MSFT). In addition, the Authors Guild, which represents a group of prominent authors, has filed a class action lawsuit against OpenAI that asks for a licensing system that would allow authors to opt out of using their books to train AI and that would force AI companies to pay for the material they use
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Despite these concerns, there’s still a lot of excitement surrounding generative AI technology. Many investors are wondering if it’s possible to invest in OpenAI’s ChatGPT and if there are other ways to invest in
generative AI.
How to Invest in OpenAI ChatGPT
OpenAI is currently not publicly traded, but if Microsoft were to take a large position in the company, investors could gain indirect exposure to OpenAI by buying Microsoft shares.
For those looking for direct exposure, watch out for news of an initial public offering (IPO). At the end of March 2024, there are no plans for an OpenAI IPO on the horizon
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OpenAI raised $11.3 billion in six funding rounds from 2016 to January 2024.
The three main investors are the technology investment firm Thrive Capital, the venture capital firm Andreessen Horowitz and the revolutionary technology investment firm Founders Fund.
Conclusions
OpenAI’s ChatGPT is just one of many emerging technologies in the field of artificial intelligence. Despite controversy and concerns, its potential impact on the industry is significant. Investors interested in this technology should carefully evaluate the opportunities available and do extensive research before making financial decisions
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