OpenAI’s ChatGPT has disrupted the tech world since its launch in late 2022. Since then, many companies have been aggressively focusing on capturing the opportunities in generative AI (artificial intelligence) by trying to develop technologies that can compete with ChatGPT. We’ll look at stocks of such companies in this article.
Investing in ChatGPT stocks in 2024 has become much easier than it was in early 2023. Back then, ChatGPT was the only generative AI model in the market. Today, several players are developing competing technologies, although they are not as effective as ChatGPT yet. Before understanding how we can invest in ChatGPT stocks, let’s understand the current dynamics of the market.
Current Trends in ChatGPT
ChatGPT brought about an unthinkable wave of transformation in the AI realm. Launched by privately held firm OpenAI in November 2022, ChatGPT boasts more than hundreds of millions of daily active users (DAUs) today. Indeed, the advent of ChatGPT opened the gates to several possibilities in different sectors, including technology, healthcare, and retail. Companies constantly keep vying to improve their chatbots and technology to bring more advanced, sophisticated generative AI products to the market.
The latest version of ChatGPT, GPT-4o, was launched recently. OpenAI is offering its latest ChatGPT version for free to win a larger market share. This version boasts improvements in voice, text, and imaging functionalities. It is also capable of remembering past interactions and supports 50 different languages. OpenAI expects all these features to enhance user experience.
How ChatGPT Evolved Over Time
Since its launch, ChatGPT has been in the news for several good and bad reasons, including opponents questioning its viability and accuracy, the dangers of job losses, the potential misuse of the tool, and the controversy surrounding OpenAI co-founder Sam Altman’s firing and return to the company. With each buzz, ChatGPT only became a stronger brand and got fixed in consumers’ minds. Meanwhile, OpenAI has also not stopped evolving.
As per statistics from Fortune Business Insights, the worldwide generative AI market is expected to grow at a CAGR (compound annual growth rate) of 39.6% to $967.65 billion by 2032 from $67.18 billion in 2024. The very scale of the future market size of the sector exhibits the massive potential that AI-focused companies have. It is no wonder that investors are highly inclined to gain exposure to the burgeoning generative AI market.
This brings us back to our main question, How do investors buy ChatGPT stocks in 2024?
Well, Here’s a Simple Answer
We already know that ChatGPT maker OpenAI is privately held and there is no common stock of the company to invest in. Even so, investors could try to buy the company’s privately-held shares from private investors (capital providers) and employees (received as stock compensation), who are willing to sell their shares. An investor can do so by registering with reputable brokers who specialize in connecting potential investors with private equity company insiders.
Another option is to invest in Microsoft (MSFT), which is one of the largest investors in Open AI. The tech giant has invested billions of dollars in the startup. Microsoft is also one of the biggest players in the generative AI space.
Investing in Other ChatGPT Stocks
As mentioned earlier, several tech companies have launched their own versions of ChatGPT/generative AI tools. Some of these companies are well-known bigwigs, including Alphabet (GOOGL), Baidu (BIDU), Amazon (AMZN), Meta Platforms (META), and Alibaba (BABA).
Using TipRanks’ Stock Comparison tool, let us see how these listed ChatGPT players compare.
Final Word
As we can see, all the aforementioned stocks have won analysts’ Strong Buy consensus rating and TipRanks Smart Score of 9 or a Perfect 10, implying that these stocks are highly likely to outperform market expectations. Investors can choose to invest in any of these generative AI stocks as a suitable alternative to buying the ChatGPT stock.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
