Investing in the Future of AI: A Look at Generative AI Stocks Investing in the Future of AI: A Look at Generative AI Stocks

Written By Michael Gary Scott

OpenAI’s ChatGPT has shook the tech world since its inception in late 2022. Since then, numerous companies have been feverishly chasing the opportunities in generative AI, striving to develop technologies that can rival ChatGPT. Let’s delve into the stocks of such companies in this discourse.

As we contemplate investing in ChatGPT stocks in 2024, we find ourselves in a landscape vastly different from early 2023. Then, ChatGPT stood alone in the generative AI arena. However, today, various players are emerging with competing technologies, albeit not as potent as ChatGPT. Before we explore how to invest in ChatGPT stocks, let’s examine the current state of affairs in the market.

Current Transformations in the ChatGPT Realm

ChatGPT has ushered in a tsunami of transformations in the AI sector. Introduced by OpenAI in November 2022, ChatGPT now boasts a user base of hundreds of millions of daily active users (DAUs). The rise of ChatGPT has unlocked numerous possibilities across various industries such as technology, healthcare, and retail. Companies are in a relentless pursuit to enhance their chatbots and technology to introduce more sophisticated generative AI products.

The most recent iteration of ChatGPT, GPT-4o, was recently unveiled by OpenAI. Offering this newest version for free, OpenAI seeks to expand its market share. GPT-4o comes with advancements in voice, text, and image capabilities. It can recall previous interactions and supports 50 different languages, all aimed at augmenting user experience.

The Evolution of ChatGPT Over Time

Since its debut, ChatGPT has been a subject of both positive and negative publicity. Critics have raised concerns about its viability, the risk of job displacements, potential misuse, and controversies such as the firing and subsequent return of OpenAI co-founder Sam Altman. With each challenge, ChatGPT’s brand has only solidified its position in the minds of consumers. Meanwhile, OpenAI continues to evolve.

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As per data from Fortune Business Insights, the global generative AI market is projected to soar at a CAGR of 39.6%, reaching $967.65 billion by 2032 from $67.18 billion in 2024. The sheer scale of the future market size underscores the vast potential that AI-focused firms hold. Naturally, investors are keen to tap into this burgeoning generative AI market.

This leads us to the crucial question – How can one acquire ChatGPT stocks in 2024?

A Simple Solution

Given that ChatGPT creator OpenAI is privately held with no publicly traded stock available, investors can explore purchasing the company’s privately-held shares from investors and employees willing to sell. This avenue involves engaging with reputable brokers specializing in linking potential investors with equity firm insiders.

Another avenue is investing in Microsoft (MSFT), a significant investor in OpenAI. Microsoft has poured billions into the startup and operates prominently in the generative AI domain.

Exploring Other Players in the Generative AI Sector

Several tech giants have entered the ChatGPT/generative AI arena with their own versions. Notable players include Alphabet (GOOGL), Baidu (BIDU), Amazon (AMZN), Meta Platforms (META), and Alibaba (BABA).

Using TipRanks’ Stock Comparison tool, we can evaluate how these aforementioned generative AI players stack up.

Final Verdict

All the mentioned stocks have garnered analysts’ Strong Buy consensus rating and a TipRanks Smart Score of 9 or above. This suggests strong potential for these stocks to outperform market projections. Investors have a plethora of generative AI stocks to choose from as an alternative to directly investing in ChatGPT.