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The AI chatbot, ChatGPT, has been able to gain a tremendous amount of fame, users, and whatnot ever since it stepped foot on the internet, and we can all thank artificial intelligence for that. Whether it's students, business owners, marketers, or anyone else using it, it's safe to say that ChatGPT, and its owning company - OpenAI, have become a household name throughout the world.
However, with its esteemed and increasing success, many people are wondering if it’s a good time to invest in this company, as the future looks shiny with this AI company. But how do you invest in OpenAI, and consequently, in ChatGPT?
Well, that’s what I’m here for. This guide aims to cover the basics of what the company is all about, how you can invest in it, and everything in between - so make sure to stick around till the end, and find out everything you need to know about the OpenAI stock!
What OpenAI Is
OpenAI is a research organization and company that focuses on developing and promoting artificial intelligence (AI) technologies. It was founded in December 2015 with the mission of ensuring that artificial general intelligence (AGI) benefits all of humanity. AGI refers to highly autonomous systems that outperform humans at most economically valuable work.
The OpenAI team, despite developing platforms that have accumulated the fastest growing network of users, is still quite little, but it started as even less than that. It started with Ilya Sutskever as the leading machine expert, with Greg Brockman as the former CTO of OpenAI.
Elon Musk and Sam Altman served as the initial board members, with Altman being the CEO of OpenAI currently. In today’s world, it is a non-profit AI research laboratory that aims to revolutionize how we see artificial intelligence, by strategically inserting it into our daily lives with innovative applications, the most infamous of which is ChatGPT.
In addition to that, OpenAI conducts cutting-edge research in various fields of AI, including natural language processing, computer vision, reinforcement learning, and robotics. One of OpenAI's most notable achievements is the development of the GPT (Generative Pre-trained Transformer) series of language models, including GPT-3.5, which is the model you are currently interacting with.
OpenAI offers several services and products that benefit users on the Internet:
GPT-based Language Models: OpenAI provides access to language models like GPT-3.5, which can understand and generate human-like text based on given prompts on both ChatGPT as well as OpenAI Playground. These models can be used for a wide range of applications, such as drafting emails, writing code, generating content, answering questions, and even stimulating conversations.
OpenAI API: OpenAI offers an API (Application Programming Interface) that allows developers to integrate GPT models into their applications or services. This enables developers to leverage the power of GPT to enhance their software, products, or platforms with natural language understanding and generation capabilities.
AI Research and Publications: OpenAI conducts extensive research in the field of AI and publishes its findings, including technical papers and insights. This helps advance the understanding and development of AI technology, fostering collaboration and knowledge sharing within the research community.
Ethical Considerations: OpenAI is committed to ensuring the responsible and ethical use of AI. The company actively considers the societal impact of AI technologies and seeks to avoid uses that could cause harm or concentrate power in the wrong hands. OpenAI is dedicated to long-term safety and the beneficial deployment of AI for the betterment of humanity.
The History Of OpenAI
OpenAI has a rich history that spans several significant milestones in the field of artificial intelligence (AI). Since its inception in December 2015, OpenAI has rapidly evolved into a leading research organization and company.
In its early years, OpenAI focused on conducting groundbreaking research in AI and publishing its findings. The organization actively contributed to the scientific community by sharing insights, technical papers, and knowledge, fostering collaboration and driving progress in AI research.
OpenAI gained significant attention and recognition in 2018 with the introduction of the GPT (Generative Pre-trained Transformer) language models. The release of GPT-2, a large-scale language model capable of generating coherent and contextually relevant text, garnered widespread interest and excitement. However, due to concerns regarding the potential misuse of such powerful technology, OpenAI initially limited its availability.
Continuing its commitment to responsible AI development, the company later expanded access to GPT-2 and engaged in dialogue with researchers, policymakers, and experts to address the societal implications of AI. They sought to balance openness with the need to mitigate potential risks, emphasizing the importance of safety and ethical considerations in AI deployment.
Building upon the success of GPT-2, OpenAI introduced GPT-3 in June 2020, a groundbreaking language model that reached unprecedented levels of performance. GPT-3 garnered significant attention for its ability to understand and generate human-like text, revolutionizing various applications, including content generation, virtual assistance, and language translation.
Can You Buy OpenAI Stock?
Now, coming back to the real reason as to why you’re here, and that revolves around buying Open AI stock.
In truth, OpenAI doesn’t come under the umbrella of publicly traded companies, which means that you can’t go to a stock exchange and buy OpenAI stocks. There’s currently no direct way of buying OpenAI stocks, and your searches for OpenAI stock symbol on any exchange will yield negligible results.
However, there’s a workaround for every single thing in the world, be that as it may, and the same is the case here. There’s a way to indirectly invest in OpenAI - and reap the benefits of ChatGPT’s success, and I’ll cover that in the next section.
How To Invest In OpenAI Indirectly
OpenAI and Microsoft ($MSFT) have been collaborating since 2016 and have received substantial investments from the tech giant, totaling billions of dollars. Microsoft aims to incorporate AI capabilities into its services, including the Bing search engine, leveraging OpenAI's expertise.
In return, OpenAI gains access to Microsoft's significant hardware power and vast datasets. However, investors need to recognize that OpenAI represents only a small portion of Microsoft's market capitalization of US$1.7 trillion, and the stock price can be influenced by various factors beyond this partnership.
For investors seeking exposure to Microsoft, another avenue is investing in ETFs. These funds allow individuals to participate in the performance of the company. The S&P 500, driven by a technology sector recovery, has had a notable impact on ETFs like $SPY and $IVV.
Take it like this. As AI models become more and more complex and 'better', they will require more computing power, and better hardware to support this better AI in general. This puts publicly traded tech companies in a good position from an investor's point of view, and you can already see Google, Amazon, and Meta have already started integrating AI into their services, and it's only a matter of time before the others follow too!
Are There People Investing In OpenAI Stock?
OpenAI’s most significant investor, and partner, has always been Microsoft, and the two have been working together for the past 8 years. However, OpenAI has received investments from a lot of venture capital firms, and being a private company, has a lot of private clients riding their money on them as well.
Quite recently, OpenAI was able to raise more than $300M from venture capital firms to further AI research and development, and that happened in 2023. However, they've been getting savvy and known investors from around the world to invest in them, such as K2 Global, Khosla Ventures, Bedrock Capital, and more, so things only go up and above from here.
There are a lot of AI companies out there that are furthering AI research and increasing funds for their AI stocks, and while there's no direct way to invest in OpenAI right now, they've certainly become the brand mark for artificial intelligence research in the world.
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