OpenAI’s large language model ChatGPT has changed the conversation around artificial intelligence, or AI, offering a glimpse into how far the technology has advanced. The fast-growing ChatGPT platform uses natural language processing to help users access relevant information based on text prompts. Instead of users having to scroll through several pages of search results on Google, ChatGPT provides an instant answer.
ChatGPT doesn’t stop at providing relevant information. Consumers can use the AI tool to create movie plots, fix lines of code and produce meal plans. Studies show that employees can use ChatGPT to perform their jobs more effectively, increase productivity and streamline mundane tasks.
The innovative AI tool also has the potential to improve people’s health. Health care companies can use ChatGPT to provide clear guidance and more effective communication between patients and health care professionals. Some AI tools can even detect diseases during their early stages and conduct robot-assisted surgeries.
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Educators may also benefit from using the tool. Khan Academy recently rolled out Khanmigo, which acts as a tutor for students and an assistant for teachers. The app doesn’t provide direct answers to students, but it provides resources that can expand their knowledge and help them discover the right answer. Khanmigo relies on ChatGPT to operate smoothly.
How Fast Is the Use of ChatGPT Growing?
ChatGPT’s usefulness and versatility made it the fastest platform to reach the milestone of 100 million monthly active users. It took only about two months from its launch to reach that number, a UBS study in February showed. OpenAI’s site currently gets 1.7 billion monthly visitors, according to data analytics firm Similarweb.
ChatGPT’s rapid growth in a booming industry has attracted the attention of many investors. OpenAI, the company that developed ChatGPT and launched it in late November 2022, has garnered billions of dollars in venture capital. The company does not trade publicly, making it difficult for investors to directly buy into ChatGPT’s growth. Right now, the opportunity for direct exposure is limited to accredited investors and large firms.
How to Invest in ChatGPT Now
However, everyday investors have several ways to get indirect exposure to ChatGPT. Some publicly traded companies have invested billions of dollars in its developer, OpenAI, while others have positioned their businesses to benefit from the growing adoption of ChatGPT and other AI solutions.
There are also investing opportunities with companies whose AI tech has gotten more attention because of the spotlight cast on ChatGPT or their partnerships involving OpenAI.
Recent drama surrounding OpenAI’s leadership briefly created uncertainty over the company’s future, which could have had major implications for its partners. On Nov. 17, the firm’s board of directors fired its highly respected CEO and co-founder Sam Altman, claiming he wasn’t “consistently candid in his communication,” in a decision that sent tremors through the tech industry. Company president Greg Brockman resigned in protest, and more than 700 of OpenAI’s roughly 770 employees threatened to quit their jobs unless the board resigned and restored Altman and Brockman to power.
OpenAI later named former Twitch leader Emmett Shear as its new interim CEO and Altman was hired by OpenAI benefactor Microsoft Inc. (ticker: MSFT), but those moves turned out to be short-lived. It was announced Nov. 22 that Altman would return to OpenAI and that the board of directors would get a makeover, with luminaries such as former Treasury Secretary Larry Summers and ex-Salesforce executive Bret Taylor getting seats.
Here are six stocks that either stand to benefit substantially from ChatGPT’s growth and the incorporation of OpenAI technologies, or to profit from the laser focus on AI chatbots now:
| Stock | YTD return as of Nov. 21 |
| Microsoft Inc. (MSFT) | 57% |
| Alphabet Inc. (GOOG, GOOGL) | 56.2% |
| JPMorgan Chase & Co. (JPM) | 17.5% |
| Nvidia Corp. (NVDA) | 241.9% |
| Palantir Technologies Inc. (PLTR) | 208.4% |
| Shopify Inc. (SHOP) | 100.9% |
Microsoft Inc. (MSFT)
Software behemoth Microsoft is one of the best stocks available for exposure to OpenAI’s ChatGPT and other language models. The company recently updated its Bing search engine and Edge browser with a built-in language model from OpenAI that is “more powerful than ChatGPT and customized specifically for search,” according to a Microsoft blog post.
Microsoft and OpenAI’s 2019 partnership, which was extended in early 2023 with a multiyear, multibillion-dollar investment from Microsoft, is a collaboration on new Azure AI supercomputing technologies and large language models. The deal made Azure OpenAI’s exclusive cloud provider.
The Seattle-based firm’s stock hit an all-time high Nov. 20 after it announced it had hired Altman and Brockman to lead a new advanced AI project. After the news broke that Altman is returning to his old job, Microsoft CEO Satya Nadella said on X, formerly Twitter, that he is “deeply encouraged” by the changes to OpenAI’s board and that Altman and Brockman have a “key role to play” in the company’s future. MSFT stock is up by 57% so far this year, closing at $373.07 on Nov. 21.
Google uses artificial intelligence to provide visitors with optimal search results based on text prompts. The tech giant recently launched its own natural language processing tool, Bard, which competes with ChatGPT and has gotten plenty of press as a result.
So, does that make Alphabet an anti-ChatGPT play? Not exactly, because Bard isn’t the only reason Google stands to benefit from the AI boom.
In April, Google and its parent company Alphabet invested over $300 million in an AI firm founded by former OpenAI researchers called Anthropic, which gives Alphabet a 10% stake in the company. Six months later, Google announced a new commitment of up to $2 billion to be invested in Anthropic, including a $500 million upfront cash infusion.
This may not represent a direct investment in ChatGPT, but it is a direct investment in the researchers who helped launch ChatGPT.
Google also formed research unit DeepMind to help develop new applications and enhance AI innovation. There’s a case to be made that at this point in the nascent AI industry, even competitors are learning from and growing with each other. GOOG stock closed at $138.62 on Nov. 21 and is up by 56.2% in 2023.
JPMorgan Chase & Co. (JPM)
The big bank is working on its own version of ChatGPT to reduce costs and give clients another reason to use JPMorgan instead of its competitors. Dubbed IndexGPT, JPMorgan’s artificial intelligence chatbot will help people select assets and can potentially offer an alternative to financial advisors. JPMorgan aims to save money on fees and streamline the client experience.
All the media attention on ChatGPT has pulled IndexGPT front and center, and JPMorgan’s trademark application for the financial “clone” of ChatGPT on May 11 certainly drew headlines. The filing with the U.S. Patent and Trademark Office indicated that IndexGPT would be used for advertising and marketing services, compiling and updating an index of securities values, and investment consulting.
JPMorgan’s entrance to AI remains speculative, but the company has enough financial clout to create a robust generative pre-trained transformer, or GPT. While waiting for IndexGPT to emerge, investors can enjoy a forward dividend yield of 2.7% and a profit margin above 30%. JPM stock closed at $152.97 on Nov. 21, and it’s up 17.5% year to date.
[READ: 10 Best Tech Stocks to Buy for 2023]
Nvidia Corp. (NVDA)
Nvidia is a dominant force in the AI industry that recently hit a $1.2 trillion market capitalization. The company has a higher valuation than most of its peers, with a price-earnings ratio, or P/E, of 120. While the valuation may be a concern, growth isn’t a problem. Nvidia reported an astounding 205% year-over-year rise in third-quarter revenues on Nov. 21, and it recorded $9.2 billion in profit, up from $680 million during the same period in 2022.
Nvidia is riding the AI wave because AI applications need Nvidia’s AI-specific chips to function effectively and work at high speeds. They’re also the bedrock for ChatGPT. OpenAI used thousands of Nvidia graphics processing units, or GPUs, to train ChatGPT, according to a Microsoft blog post.
OpenAI will have to obtain more Nvidia GPUs to fulfill the rising demand for ChatGPT, and other AI tools may latch onto Nvidia as well. As ChatGPT and other AI tools become more popular, the companies creating and maintaining those tools will have to purchase additional chips from Nvidia for their data centers.
NVDA shares closed at $499.44 on Nov. 21, and the stock is up an astounding 241.9% year to date.
Palantir Technologies Inc. (PLTR)
Palantir is a $43 billion software company that was using AI long before ChatGPT became mainstream. The firm’s chatbots and big data analytics have attracted interest from multiple governments that want to make better decisions for their militaries.
Palantir is making enhancements to its chatbots to give guidance to business owners. This shift allows Palantir to serve more companies and business verticals instead of relying on government business. Granted, the governments that use the technology tend to stick around, due to the difficulty of switching to another resource.
Palantir’s share price has more than tripled this year as more people and organizations incorporate chatbots into their businesses. Palantir has respectable double-digit revenue growth and strong earnings that have more than doubled year over year. It has suddenly become a profitable company with rapidly expanding margins.
PLTR stock closed at $19.80 on Nov. 21, which represents a 208.4% year-to-date return.
Shopify Inc. (SHOP)
Shopify is a hyper-growth e-commerce company that uses ChatGPT for customer communication. The “shop assistant” can answer questions for potential customers and help increase the number of people who use the platform. Current clients can also use Shopify’s solution to better serve their own prospects and increase sales.
The company has returned to profitability after a successful round of cost-cutting initiatives, recently reporting 25% year-over-year revenue growth. The stock has been on a tear, having already doubled year to date after a challenging 2022. SHOP stock closed at $69.73 on Nov. 21, notching a 100.9% gain so far in 2023.
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Can You Invest in ChatGPT and OpenAI? originally appeared on usnews.com
Update 11/22/23: This story was previously published at an earlier date and has been updated with new information.
