Can I buy stock in ChatGPT?
When the veil of the tech world was lifted to unveil generative AI, it was as if we’d unearthed a genie in a bottle—a genie named ChatGPT. This AI marvel, developed by OpenAI, has brought an unprecedented jolt to our digital interactions with its uncanny ability to write poetry, code, and tackle complex subjects with great finesse. But let’s dive into the crux of the matter—many tech enthusiasts and burgeoning investors are scratching their heads and pondering, « Can I buy stock in ChatGPT? »
In short—no, you cannot buy stock directly in ChatGPT. OpenAI, the parent company behind this technological phenomenon, isn’t publicly traded. But before you sulk into the shadows, let’s embark on a journey to explore the landscape of potential investment options that ride the coattails of ChatGPT and the burgeoning generative AI industries.
How to Invest in ChatGPT
While owning stock in ChatGPT itself is off the table, several indirect routes can help you gain exposure to this AI juggernaut. So grab your metaphorical magnifying glass, and let’s investigate the various avenues through which you can dip your toes into the lucrative pool of generative AI investments.
The most notable approach to getting a slice of the pie is to look at Microsoft (NASDAQ: MSFT). This tech behemoth has been intricately woven into the fabric of OpenAI since 2019, establishing a strategic partnership and pouring billions into this fledgling venture. A huge jump in investment came in early 2023 when Microsoft poured in a staggering $10 billion after the launch of ChatGPT, marking its confidence in OpenAI’s capabilities. Microsoft isn’t just tossing around money for giggles; they genuinely believe that AI represents the next significant shift in computing technology.
If that doesn’t get the investment juices flowing, then look no further than Nvidia (NASDAQ: NVDA), the powerhouse behind the graphics processing units (GPUs) that fuel AI development. Often referred to as the backbone of AI, Nvidia’s GPUs are critical in training and running models like ChatGPT, making it a strong candidate for anyone looking to invest parallel to the generative AI boom. Due to skyrocketing demand for AI-related workloads, Nvidia’s revenue has soared, positioning it as a front-runner in the realm of AI investment.
But the plot doesn’t end there; I’d be remiss if I didn’t mention Arm Holdings (NASDAQ: ARM), a key player in designing energy-efficient CPUs vital for AI applications like ChatGPT. Their business model relies on licensing their innovative technology—which is notably used in smartphones and AI data centers—promising great potential as we zoom into a world increasingly powered by artificial intelligence.
Additionally, a swath of exchange-traded funds (ETFs) allow you to invest in generative AI technologies, providing you exposure to the likes of Microsoft, Nvidia, and Arm—talk about an investment buffet!
1. Microsoft (NASDAQ: MSFT) – Key Data Points
If you’re pondering where your digital dollars should land to connect closely with ChatGPT, Microsoft stands tall as the ideal beacon of hope. This titan of technology is no stranger to generating profits across multiple fronts, with its diverse revenue streams emanating from Windows operating systems, cloud services like Azure, and even social networks like LinkedIn.
The spotlight that’s currently shining on Microsoft is fueled by its strategic alliance with OpenAI, a partnership that signals a genuine commitment to advancing AI. Under the stewardship of CEO Satya Nadella, Microsoft is poised to redefine the technological landscape, with AI seen as the next frontier of computing.
Let’s peek behind the curtain at just how substantial this investment is: More than 65% of the Fortune 500 companies currently utilize Azure OpenAI services, and during the most recent quarter, new AI features contributed a remarkable six-percentage-point increase in Azure’s revenue. Furthermore, LinkedIn revenue soared by an impressive 29% thanks to the implementation of AI initiatives, cementing Microsoft’s position in the AI investment arena.
While Microsoft may tower over other companies, it’s essential to note that only a fraction of its total business is exposed directly to ChatGPT. However, considering its ongoing development and integration of AI technologies, Microsoft is likely to remain a central player focused on steering the ship through the generative AI ocean.
2. Nvidia (NASDAQ: NVDA) – Key Data Points
Nvidia has become something of a household name, and for good reason. Over the last decade, this stalwart has transformed its graphics processing chips into essential components across industries, notably entering gaming, automotive tech, and, of course, artificial intelligence. The tech company has recognized AI’s insatiable demand for computing power, making its chips crucial for processing the complex models underlying ChatGPT and similar technologies.
The moment ChatGPT burst onto the scene, Nvidia capitalized on the wave of excitement and innovation. It is estimated that a whopping 10,000 Nvidia GPUs were required to train ChatGPT alone, and that number is on the rise as the chatbot continues to flourish. OpenAI’s CEO, Sam Altman, has openly applauded Nvidia’s technology, pointing to its tremendous role in advancing AI capabilities.
As AI interwoven into various sectors continues to proliferate, Nvidia is well-positioned to thrive. The company has joined forces with Microsoft to create a formidable AI cloud infrastructure, utilizing thousands of Nvidia GPUs. So, if you’re looking for an investment synonymous with the surging demand for AI computing power, Nvidia is a compelling option to consider.
3. Arm Holdings (NASDAQ: ARM) – Key Data Points
Let’s space things out a bit here and take a look at Arm Holdings. With its innovative approach to CPU design, Arm excels in low-power architecture, catering to the growing appetite for energy-efficient technologies. As AI ramps up and computational demands swell, Arm stands to benefit magnificently.
Arm’s unique business model relies on licensing its designs, followed by royalties as products hit the market. For instance, Microsoft incorporates Arm architecture into its latest CPUs, catering to the explosive demand for cloud computing and general workloads. In their June quarterly earnings report, Arm revealed that their revenues shot up by a staggering 72%, signifying the role AI is playing in the company’s growth.
This places Arm at the nexus of AI tech advancements. As generative AI evolves, the speed at which technologies like ChatGPT gain traction can directly influence Arm’s fortune, making it a valuable option for prospective investors looking to align with the future of artificial intelligence.
ETFs with Exposure to ChatGPT
While we’ve touched upon individual stocks, let’s not overlook the potential of exchange-traded funds (ETFs) to round out your investment portfolio with nuanced exposure to generative AI. Here are a couple worth considering:
1. Invesco AI and Next Gen Software ETF
The Invesco AI and Next Gen Software ETF (IGPT 1.34%) is tailored for those specifically targeting AI stocks associated with generative AI, including the likes of ChatGPT. Its top holdings feature industry powerhouses such as Alphabet (GOOGL/GOOG) and Meta Platforms (META), underscoring its focus on companies investing heavily into AI technology.
This ETF operates under the umbrella of the STOXX World AC NexGen Software Development Index, comprising an array of companies that are driving advancements in software development. Boasting nearly two decades of presence in the market and an expense ratio of 0.6%, it’s an attractive option for anyone looking to ride the AI wave without directly buying individual stocks.
2. Roundhill Generative AI & Technology ETF
Not all ETFs make a splash right away, but the Roundhill Generative AI & Technology ETF captures the essence of the ongoing AI revolution. This fund rounds up various stocks engaged with generative AI and its technological twin.
By pooling resources into the Roundhill Generative AI & Technology ETF, investors gain exposure to multiple companies involved in the development of exciting new technologies akin to ChatGPT, broadening their investment horizons.
In Closing
So, can you buy stock in ChatGPT? No, but you can still be part of this electrifying ride that generative AI is on. Through investments in industry titans like Microsoft, Nvidia, and Arm, or by selecting ETFs that prioritize AI technologies, you can immerse yourself in the wave of opportunism generated by advancements in AI chatbots and beyond.
As with any investment journey, it’s wise to conduct thorough research and assess your risk appetite. No one can predict the future, but with the right picks, you just may find yourself reaping the rewards as we glide into a future where AI technologies like ChatGPT redefine the way we interact with the digital universe. Happy investing!