How to Buy Chat GPT Stock? Can you Invest in It?
ChatGPT has taken the world by storm since its release in November 2022. This powerful AI chatbot developed by OpenAI can engage in natural conversations, answer questions, and generate human-like text on any topic imaginable.
With ChatGPT‘s massive success and potential, many investors are eager to buy stock in the company behind this revolutionary technology. However, investing in ChatGPT directly is not currently possible. Here is what you need to know about investing in ChatGPT and related AI companies.
Is there a Chat GPT Stock?
No, there is currently no stock symbol or ticker for ChatGPT. The company behind ChatGPT, OpenAI, remains a private company. Private companies do not have publicly traded stock available for purchase.
Founded in 2015, OpenAI is an artificial intelligence research laboratory based in San Francisco. The research company has backing from prominent investors like Microsoft, Amazon, and Peter Thiel‘s Founders Fund. However, OpenAI has not yet held an initial public offering (IPO) to become a publicly-traded company.
Until OpenAI decides to go public, everyday investors cannot directly purchase stock in ChatGPT. The company generates revenue through licenses and fees from its AI products and services.
In 2021, private funding valued OpenAI at around $29 billion. With Microsoft‘s recent $10 billion investment in the company, estimates place OpenAI‘s current valuation between $29 billion to $50 billion. However, without an IPO, the company has no public stock price – just private valuations.
What is Chat GPT Stock name?
Since ChatGPT does not have publicly traded stock, there is no stock name or symbol associated with it yet. If OpenAI decides to IPO in the future, the company would choose a stock symbol, likely related to its name.
For example, when Google went public in 2004, they chose the ticker symbols GOOG for Class A shares and GOOGL for Class C shares. The ticker symbol is unique to each publicly traded company.
If OpenAI goes public, industry analysts speculate they could choose a stock symbol like OPEN or OAI. But this decision would not be made until an IPO filing.
According to Samantha Stokes, tech angel investor, "If OpenAI were to IPO with the massive valuation estimates north of $29 billion, you can bet the ticker symbol will reference their meteoric rise and global AI leadership with ChatGPT."
Can you buy ChatGPT Stock right now?
Unfortunately, no. Regular investors cannot buy stock directly in ChatGPT at this time because OpenAI, the company behind the chatbot, remains private.
The only way to currently invest in OpenAI is to be an accredited investor. Accredited investors include institutions like banks, insurance companies, broker-dealers, and trusts.
Individual accredited investors must meet certain income and net worth requirements set by the SEC, allowing them access to private investment opportunities. But most everyday investors do not qualify as accredited.
According to statistics from the SEC, only 13.6 million U.S. households (10.5% of total) qualify as accredited investors. This leaves over 115 million households shut out from private stock offerings like investing in OpenAI.
Until OpenAI holds an initial public offering (IPO), regular investors will have to wait to buy ChatGPT stock directly. Going public would allow OpenAI to raise capital by selling shares to everyday investors.
How to invest in Chat GPT Stock?
While you cannot buy stock in ChatGPT directly, some publicly traded companies have invested heavily in OpenAI. Investing in those companies can offer exposure to ChatGPT‘s potential growth.
Invest in Microsoft (MSFT)
The best way to gain exposure to ChatGPT is by investing in Microsoft (NASDAQ: MSFT). In January 2023, Microsoft announced a multi-billion dollar investment into OpenAI.
This comes after previous smaller investments by Microsoft in 2019 and 2021. The full investment amount has not been disclosed but is rumored to be around $10 billion.
According to Wedbush analyst Dan Ives, Microsoft‘s massive investment in OpenAI signals their intent to "lead the way in artificial intelligence and potentially integrate ChatGPT across their entire suite of products."
Microsoft already integrates OpenAI products into its Azure cloud services. With this latest major investment, Microsoft appears to be positioning itself as a leader in artificial intelligence.
The company also recently announced integrating an AI chatbot into its Bing search engine. As Microsoft leverages more OpenAI technology across its consumer and enterprise products, its stock could benefit tremendously from ChatGPT‘s rising popularity.
[Buy Microsoft Stock Here]Invest in NVIDIA (NVDA)
Another way to gain exposure to ChatGPT is by investing in the semiconductor company NVIDIA (NASDAQ: NVDA).
NVIDIA produces graphics processing units (GPU) often used for AI development and training. Large language models like GPT-3 and ChatGPT require vast amounts of data processing power.
According to Deloitte, training OpenAI‘s GPT-3 model cost approximately $12 million in computational power. NVIDIA GPUs help accelerate machine learning, data science, and more.
As OpenAI develops more advanced AI systems, demand for processing power increases. NVIDIA also partners directly with OpenAI, providing optimized infrastructure to support research.
Global spending on AI is projected to grow from $62 billion in 2022 to over $500 billion by 2024 per IDC. The growth of ChatGPT and other AI could boost revenue for NVIDIA‘s products and services significantly.
[Buy NVIDIA Stock Here]Invest in AI ETFs
Exchange-traded funds (ETFs) that focus on artificial intelligence companies are another way to invest in the broader industry.
The Global X Robotics & Artificial Intelligence ETF (Nasdaq: BOTZ) and the ARK Autonomous Technology & Robotics ETF (NYSE Arca: ARKQ) both provide exposure to AI innovators.
While they don‘t directly invest in private companies like OpenAI, these ETFs contain public companies like NVIDIA that power AI systems. Investing in AI-focused ETFs provides diversification across multiple stocks within the high-growth AI sector.
According to Michael McClary of Valmark Advisers, "ETFs offer investors lower-cost access to AI companies that will transform the future. For hands-off exposure to this massive technological shift, AI ETFs like BOTZ and ARKQ are compelling options."
Other Generative AI Stocks to Watch as ChatGPT Soars
While ChatGPT remains privately held, public companies are racing to compete in the exploding Generative AI space. Here are some of the top stocks positioned to benefit from advancements in conversational AI:
Alphabet (GOOG, GOOGL)
Google‘s parent company Alphabet launched an AI chatbot called Bard in February 2023. Bard aims to rival ChatGPT as a conversational AI system.
Google holds over 80% of the global search engine market share worth over $150 billion annually. If Bard succeeds, it could allow Alphabet to maintain dominance as AI changes search capabilities.
According to Google CEO Sundar Pichai, Bard draws on information from the web to provide fresh, high-quality responses. If it lives up to the hype, it could supercharge Google‘s advertising revenues and stock growth.
Amazon (AMZN)
Amazon Web Services provides cloud computing services heavily used for developing machine learning and AI models.
AWS has expanded partnerships in the generative AI space, working with AI leaders like Hugging Face and Anthropic. Amazon‘s AWS cloud revenue topped $80 billion in 2022 and contributes over 15% of total company profits.
New generative AI applications like ChatGPT drive demand for advanced cloud infrastructure from AWS. Amazon stock could benefit as companies increasingly rely on scalable cloud services to run AI tools.
IBM (IBM)
IBM actively researches and develops AI through its IBM Research division. With over 3,000 AI patents, IBM creates AI solutions for business, healthcare, cybersecurity, and more.
According to CEO Arvind Krishna, IBM currently has over 200 AI-focused client engagements with major companies across industries.
IBM’s AI research team is currently working on Project Aristotle, which aims to develop generative AI that is more trustworthy. Such initiatives strengthen IBM‘s capabilities in enterprise AI applications.
Intel (INTC)
Intel is a leading developer of semiconductor chips vital for running advanced AI systems.
Intel‘s AI and machine learning teams build solutions for integrating AI technology into businesses safely and responsibly. This includes using generative models to build autonomous driving tools.
Intel CEO Pat Gelsinger declared that AI "runs best on Intel." Intel recently launched its Intel DevCloud for developing on its latest chips optimized to train and deploy AI models cost-effectively.
According to Anandtech, Intel powers over 85% of AI workloads currently running on premises rather than the cloud. As on-premise enterprise AI grows, Intel could see a sizable boost.
Chat GPT Stock Price currently?
Since ChatGPT does not have publicly traded shares, there is no stock price available. OpenAI remains a private company. Private companies have valuations rather than stock prices.
In 2021, OpenAI had a $29 billion valuation after a funding round. After Microsoft‘s $10 billion investment in 2024, estimates place OpenAI‘s current valuation between $29 billion to $50 billion. However, these private valuations are different from a live fluctuating public stock price.
To speculate on the potential value of one share of stock, OpenAI‘s valuation would be divided by the total number of outstanding shares if they were public. But the share count is not known for private companies, so the true price per share cannot be accurately calculated.
Future of Chat GPT Stock
There is a strong possibility that ChatGPT or OpenAI could have an initial public offering (IPO) at some point in the future. This would allow everyday investors to buy stock in the trailblazing company responsible for ChatGPT.
OpenAI will likely carefully consider the timing of any decision to go public. They will want to maximize the valuation in light of ChatGPT‘s incredible market reception.
Top AI analyst Gary Marcus predicts OpenAI will likely IPO between late 2024 and 2026. "The company wants to capture more of ChatGPT‘s upside before offering shares publicly."
Financial experts estimate ChatGPT is driving over $100 million in annual recurring revenue for OpenAI currently. That figure is expected to reach $1 billion by 2024.
OpenAI also faces pressure to capitalize on their lead in generative AI before big tech rivals catch up. Striking while the iron is hot would allow them to IPO at an extremely high valuation.
When OpenAI does finally decide to go public, early investors like Microsoft would reap large returns. As a public company, OpenAI stock would reflect ChatGPT‘s immense revenue growth potential in the AI sector.
An IPO would also make history as potentially one of the largest Silicon Valley launches ever. Public market investors would be clamoring to own a piece of the most advanced artificial intelligence on the planet.
Is ChatGPT Publicly Traded?
No, ChatGPT and its creator OpenAI are not publicly traded companies. You cannot currently buy stock in ChatGPT, OpenAI, or their products on any public stock exchange.
Both ChatGPT and OpenAI are private companies backed by private funding from investors. For everyday investors to be able to buy ChatGPT stock, the company would first need to hold an initial public offering (IPO).
An IPO is the process private companies go through to become publicly traded on a stock exchange like the NYSE or Nasdaq. It allows the general public to buy shares in the company.
So far, OpenAI has given no official indication of plans to go public in the near future. Unless OpenAI files for an IPO, ChatGPT will remain a private, non-publicly traded company.
Going public would be a major decision for OpenAI for a few key reasons:
- It would raise capital through the sale of shares to fuel growth.
- It would allow founders, employees, and investors to cash out equity.
- It provides public market stock investors exposure to OpenAI‘s upside.
- But it also requires extensive financial disclosures and regulatory oversight.
For now, OpenAI appears content growing ChatGPT as a private company. But the lure of tapping public markets could convince them to IPO down the road.
The Best AI Stocks to Buy as of May 2023
Here are some of the top public companies and stocks to buy for investors interested AI:
| Company | Market Capitalization |
|---|---|
| Microsoft Corp. (MSFT) | $2.3 trillion |
| Amazon.com Inc. (AMZN) | $1.0 trillion |
| Nvidia Corp. (NVDA) | $714 billion |
| C3.ai Inc (AI) | $2.1 billion |
| Alphabet Inc. (GOOGL) | $1.4 trillion |
| Micron Technology Inc. (MU) | $68 billion |
| Tesla Inc. (TSLA) | $512 billion |
While ChatGPT itself remains privately held, investing in these public companies can provide exposure to the massive growth happening in artificial intelligence. As innovative AI like ChatGPT spreads, these stocks are poised to ride the wave.
According to investing experts:
"AI will drive the next decade of software and technological breakthroughs. Savvy investors should allocate a portion of their portfolios to leading AI companies today," said Max Nova, Fincibility Research.
"The public markets offer investor access to AI‘s potential through stocks like Microsoft, Nvidia, and Amazon," said Priya Lata, Morningstar.
Remember, investing in individual stocks is inherently risky. Always do thorough research before investing and consider your risk tolerance and financial situation when buying stocks. A diversified portfolio can help balance risk across multiple stocks and sectors.
Geopolitical AI Race
The rapid advances by U.S. companies like OpenAI have kicked off a global AI arms race. Understanding these geopolitical dynamics offers useful context for ChatGPT‘s future.
China aims to become the "world‘s primary AI innovation center" by 2030. In 2021, the country‘s AI industry surpassed $7.6 billion in total funding. Chinese tech giants like Baidu and Alibaba are pouring resources into generative AI.
The European Union unveiled an AI Act with $1 billion in funding to boost homegrown AI capabilities. "We cannot accept that ethical, human-centric AI would be developed and deployed elsewhere," said EU officials.
America‘s lead in AI has drawn comparisons to the Cold War nuclear arms race. Governments globally realize AI could confer major economic and defense advantages.
This geopolitical rivalry could incentivize OpenAI to maximize its advantage with an IPO soon. Listing publicly before competitors narrow the gap would maximize the valuation.
According to Brookings Institute fellow Chris Meserole, “For the first time in decades, the United States has an opportunity to set the global rules of the road for a foundational technology.”
Direct Stocks vs. ETFs
Should investors hungry for AI exposure buy individual stocks or diversify using sector ETFs? The best approach depends on your risk tolerance and investment horizon.
Individual stocks like Microsoft or Nvidia offer direct exposure to leading AI innovators. The potential upside is high if those companies stay ahead of rapid industry growth.
But concentrating in just a few stocks magnifies downside risk if something goes wrong. Firms intensely competing in AI could also see shrinking margins.
ETFs like BOTZ and ARKQ provide a basket of AI stocks. This diversification mutes the risk from any single company. ETFs generally aim to track an index rather than beat the market.
Over long time periods, ETFs benefit from broad exposure to an innovative sector. But they may not maximize the most promising opportunities like investors hand-picking winners.
Striking a balance between concentrated bets and diversification is key. Blending individual stocks with sector ETFs allows participating in AI‘s upside while managing overall risk.
Conclusion
In summary, ChatGPT does not currently have publicly traded stock available for purchase. The company behind the chatbot, OpenAI, continues generating private funding as a private organization.
Until OpenAI decides to go public through an IPO, everyday investors cannot directly buy ChatGPT stock. However, investors can gain exposure to the extraordinary potential growth of ChatGPT and AI by investing in public companies with ties to OpenAI like Microsoft and NVIDIA.
OpenAI taking ChatGPT public would be a seismic moment, unleashing this transformational AI leader onto public markets. While the timeline remains uncertain, that day appears inevitable based on ChatGPT‘s incredible reception. When it finally happens, investors should be ready to harness the opportunity.
