What is OpenAI ChatGPT and can you invest? (Updated January 31)

What is OpenAI ChatGPT?

Created by the San Francisco-based technology lab OpenAI, ChatGPT is a generative artificial intelligence software application that uses a machine learning technique called reinforcement learning from human feedback (RLHF) to emulate human-typed conversations based on a wide range of user input. This type of software is better known as an AI chatbot.

ChatGPT learns languages ​​by training with texts obtained from the Internet, including online encyclopedias, books, academic journals, and blogs. Based on this training, the AI ​​chatbot generates text by making predictions about which words (or tokens) can be put together to produce the most appropriate response.

More than a million people interacted with ChatGPT within the first week of its launch to free public trials on November 30, 2022. Many were in awe of the chatbot’s seemingly natural language capabilities, not only in terms of understanding questions, but also its human-like responses. In essence, users felt as if they were conversing with a real human being.

In addition to being an excellent conversation partner, ChatGPT can write engaging storiessoulful poetry and catchy song lyrics.

Based on this success, OpenAI has been working on a more powerful version of the ChatGPT system called GPT-4which will be released in 2023, possibly in the first quarter of the year.

What is Elon Musk’s relationship with OpenAI?

OpenAI was founded in 2015 by current CEO Sam Altman, as well as Tesla (NASDAQ:TSLA) Elon Musk and other big-name investors, including venture capitalist Peter Thiel and LinkedIn co-founder Reid Hoffman. Musk left his seat on the OpenAI board of directors in 2018 to focus on Tesla and its pursuit of autonomous vehicle technology.

A few days after ChatGPT was made available for public testing, Musk took to Twitter to say, “ChatGPT is terribly good. We are not far from dangerously strong AI.” The same day, ad that Twitter had closed the door on OpenAI’s access to its database so that it could no longer use it for RLHF training. Their reason: “OpenAI started as open source and not for profit. Neither is still true.”

Is ChatGPT revolutionary or overkill?

Is ChatGPT a revolutionary technology or just another hyped tech fad that will fail, in the form of google glass either the segway? It may be too early to tell, but as with any new technology, there are many wrinkles to iron out.

One of the most difficult bugs to fix before ChatGPT can be more widely deployed with a high degree of confidence is the chatbot’s propensity to respond with “plausible-sounding but incorrect or nonsensical answers.” supports OpenAI. Remember, your selection of which words to match in an answer are actually predictions, not as fallible as mere guesses, but fallible just as much.

From basic math to medical information, ChatGPT doesn’t always provide the right answers, a flaw that can have dangerous real-life consequences. Technology could be used to spread misinformation, perform email phishing scams or write malicious code.

Furthermore, AI-based technology is prone to racial and gender bias. This language learning model has not only contributed to the human quality of its responses, but has also detected some of humanity’s shortcomings.

“ChatGPT was trained in the collective writing of humans all over the world, past and present. This means that the same biases that exist in the data can also appear in the model. explains Garling Wu, staff writer for the online technology publication MUO. “In fact, users have shown how ChatGPT can give some terrible responses, some for example discriminating against women. But that’s just the tip of the iceberg; it can produce responses that are extremely damaging to a variety of minority groups.”

There is also fear among teachers that technology is leading to an unwelcome increase in academic dishonesty, with students using ChatGPT to write essays or complete their science homework.

“Teachers and school administrators have been scrambling to catch students using the cheating tool, and are concerned about the havoc ChatGPT could wreak on their lesson plans,” writes the New York Times Tech. columnist kevin roose.

Despite these concerns, we are likely to see new iterations of ChatGPT, hopefully without the aforementioned bugs, as OpenAI is supported by tech giant Microsoft (NASDAQ:MSFT).

Why is Microsoft investing in OpenAI?

Since 2019, Microsoft has invested at least $3 billion in OpenAI to help small tech companies build their ultra-powerful AI chatbot, like reported by New York Times technology correspondents Cade Metz and Karen Weise.

Microsoft is ready to invest even more money in OpenAI in 2023. The company announced in mid-January that as part of the third phase of its partnership with OpenAI, it will make “a multi-year investment of billions of dollars.”

Although Microsoft hasn’t said how much its ultimate spending will be, reports indicate that $10 billion is on the table. According to Forbes, OpenAI was recently valued at $29 billion, which means that a $10 billion move from Microsoft would be huge.

How could Microsoft benefit from your investment? It seems the tech giant is hopeful that advances in generative AI could have the potential to boost revenue from its Azure cloud computing business like OpenAI. officially licensed its technologies to Microsoft in 2020. In fact, Pitchbook has described the deal as a “unprecedented milestone” for generative AI technology.

What stocks will benefit the most from AI chatbot technology?

Other than Microsoft, what stocks are likely to get a boost from advances in generative AI technology?

There are several verticals in the technology industry with indirect exposure to AI chatbot technology, such as semiconductors, network equipment vendors, cloud providers, central processing unit manufacturers, and the Internet of Things.

Some of the publicly traded companies in these verticals include:

• NVIDIA Graphics Processing Unit Leader (NASDAQ:NVDA)
• Taiwan Semiconductor Manufacturing Company (TPE:2330), one of Warren Buffett’s favorites
• Computer memory and data storage maker Micron Technology (NASDAQ:MU)
• Digital communications company Cisco Systems (NASDAQ:CSCO)
• Network product provider Juniper Networks (NYSE:JNPR)
• Semiconductor maker Marvell Technology Group (NASDAQ:MRVL)
• Cloud computing company Amazon Web Services (NASDAQ:AMZN)
• Bluechip multinational technology company IBM (NYSE:IBM)
• The world’s largest semiconductor chipmaker by revenue, Intel (NASDAQ:INTC)

While most companies specializing in generative AI remain in the venture capital stage, there are plenty of AI stocks out there for those interested in the space. Article 5 of INN’s Canadian Artificial Intelligence Actions includes some examples.

Investors who don’t like to put all their eggs in one basket can check out these 5 AI ETFs. And if you’re looking for a more general overview of the market, INN has you covered with How to Invest in Artificial Intelligence. You can also take a look at the market in 2022 with our AI Market 2022 Year-End Review.or step into the future of AI by reading our AI Market Forecast: 3 Major Trends Affecting AI in 2023.

Can you invest in OpenAI right now?

So can you invest in OpenAI? The company is not currently a publicly traded stock; however, if Microsoft takes a significant position in the company, investors will be able to gain indirect exposure to OpenAI by purchasing Microsoft shares.

For those looking for direct exposure, keep an eye out for news of an initial public offering (IPO). As of late January 2023, there are no plans for an OpenAI IPO on the horizon, but the Wall Street Journal reported on january 5 that the AI ​​lab is in talks with venture capital firms to sell existing shares in the company for a minimum value of $300 million.