Do you know how to invest in ChatCPT?Since the past few months, ChatGPT and its alternatives have been the talk of the town. Artificial Intelligence (AI) growth has been tremendous, and ChatGPT has become one of its most popular uses, if not the leader in the industry. Can investors be part of its growth? Unfortunately, you can’t directly invest in ChatGPT as it is not a public company, but there are other ways to take advantage of this technology on the stock market.
Table of Contents
- What is ChatGPT?
- How to Invest in ChatGPT with Other Public Companies
- How to Invest in ChatGPT Using a Stock Market Algorithm
What is ChatGPT?
In November 2022, OpenAI launched ChatGPT, and millions of users immediately subscribed to its software. Since then, multiple updates have improved the program; further updates are still to come. Not only can ChatGPT answer virtually any question better and more efficiently than Google (NASDAQ: GOOGL), Bing, or any other search engine, but it can also:
- Explain complex topics
- Solve math and complex equations step-by-step
- Write with a specific tone or a particular genre
- Write and explain code
The possibilities increase with every update, and the output’s quality improves. This technology forced education systems worldwide to rethink how they should conduct their teachings. Other companies are focusing this AI technology on complementary features. Now people are wondering how to invest in ChatGPT.
ChatGPT Complementary Uses
Google and other companies are attempting to release their version of this technology. They want to keep their market share and remain leaders in their respective industries. Many platforms offer a similar tool, but others go even further. Will we see inventing in AI coming? Will we be able to learn how to invest in ChatGPT?
AI can be used for text but also images. This is where the controversy begins. AI image generators use existing pictures, modify them and generate something unique. Many such tools are scrutinized because art and visuals can replace humans and their work. Some programs even generated prize-winning artwork and pictures.
If you need a logo, it can be artificially generated. Same for text-to-image needs and so much more. This technology is booming, and it’s hard to see where or when it can end.
Do you know how to invest in ChatGPT? Can you use ChatGPT to invest?
Microsoft (NASDAQ: MSFT)
Microsoft conducts business in different segments. Progress with ChatGPT can be beneficial in many of them. Let’s take a look. You can invest in Microsoft? But do you know how to invest in ChatGPT?
OpenAI and How to Invest in ChatGPT
You’re probably wondering what Microsoft has to do with OpenAI and ChatGPT. Since 2019, Microsoft has been Open AI’s partner, and around $10B has been invested in the company. Microsoft has a lot to gain by being the leader in this sector.
This technology can easily be incorporated into its Windows platform and search engine Bing. Can this finally be the breakthrough for Internet Explorer’s predecessor to ‘’compete with Google’’?
Google has its version in Bard, but recent demonstrations are still unsatisfactory. Which company will come on top, and do you know how to invest in ChatGPT?
Microsoft can also implement ChatGPT with its XBOX platform. Video game NPCs have a limited number of responses and movements. With ChatGPT, users could interact properly with video game characters.
NPCs will have much more freedom, and the game will reach a new level. If this happens, XBOX games will have an edge over their competitors. What does that mean for learning how to invest in ChatGPT? Nothing at the moment since it’s not a part of a publicly traded company.
Finally, Microsoft recently announced that ChatGPT is available on its Azure Open AI service. Developers can integrate ChatGPT into their applications and increase their performance and user-friendliness. Could investing in Microsoft be a way to invest in ChatGPT?
How to Invest in ChatGPT with Other Public Companies
Do you know how to invest in ChatGPT using other public companies? These companies with ties to Microsoft ChatGPT have much to gain as this technology progresses.
Let’s go back to Bing for a moment. More than half of Perion’s revenue results from its ad partnership with Bing. When users purchase anything after clicking on an ad, Perion benefits.
If ChatGPT’s addition to Bing can boost the search engine’s usage, Perion claims it will gain massively. According to the company, every market share percentage gain translates to roughly $2B in revenue. This could be big for this little-known ad-tech company.
Very powerful chips are necessary to run this technology, and NVIDIA is considered at the top of the AI food chain. Not only are its chips considered the best, but they are also ahead in production capacity. Global chip shortages have been common across various industries in the last few years. If NVIDIA can supply these industries, its shareholders will be in for a treat.
In June, AMD released its AI chips that can compete with NVIDIA’s. However, little to no big clients have been reported yet. AMD’s credibility in the field hasn’t been tested and approved yet.
How to Invest in ChatGPT and The Stock Market
The free version of ChatGPT is limited since it doesn’t have access to live data. On the other hand, the Plus version can provide real-time information to its users.
The next logical question is how to use ChatGPT to make the best stock market predictions. So far, we have mixed reviews. According to analysts and advisors, ChatGPT can make some decent stock picks but lacks the personal element and cannot replace a professional for quite some time.
Investors have different needs, goals, and risk tolerance. ChatGPT provides an incomplete but satisfactory answer, with people asking how to invest in ChatGPT.
How to Invest in ChatGPT Using a Stock Market Algorithm
Do you know how to invest in ChatGPT? Various researchers have attempted a different approach to see if ChatGPT can predict future stock market performance. The first used over 57,000 headlines for 4138 companies from October 2021 to December 2022.
None of these headlines were part of its training data. ChatGPT analyzed these articles and attempted to predict investor sentiment. According to the study, some returns were nearly 500%.
This shows that it can successfully predict what can happen in the long term after news is released. The software used various stock market strategies. Only half were successful but performed way better than the S&P (-12% return) during that period:
Long-Short strategy (buy good news and short bad news): 500% return
Short-only strategy (short bas news): 400%
Long-only strategy (buying good news): 50%
All news, equally-weighted hold and market-value-weight hold: negative returns
ChatGPT Dummy Portfolio
Between March 6th and April 28th, another study asked ChatGPT to select 38 stocks for a dummy portfolio.
When we compare the dummy fund’s performance (4.9%) over those eight weeks, it surpasses the S&P (3%) and ten other leading investment funds (-0.8%).
What can we conclude from all this information? Can ChatGPT help you make wiser stock market decisions?
There is still too little data for a conclusive answer. Users need access to the Plus version for real-time data.
In any case, ChatGPT can help its users with basic stock market information, and it can summarize and analyze an article.
How to Invest in ChatGPT Conclusion
To conclude, investors have a few possibilities regarding investments with ChatGPT. Microsoft and other public companies have solid ties with the software and can be excellent investment options.
Investors can also ask ChatGPT to explain some terms, analyze news regarding a company directly, or pick stocks based on some criteria.
The stock market is very unpredictable, and unlikely anyone can have a successful investing career with ChatGPT as their only investing guide. For the best results, conduct your research and use all the tools you have.