Artificial Intelligence (AI) is one of the fastest growing categories in tech.  Many tech giants as well as start-ups are using AI to improve their service, product, or streamline their business model to make it more cost effective.  The applications are quite vast, from self-driving cars to virtual assistances.  There are even some discussions among experts as to when human-level AI will exist.

With a rapid growth in AI development, investors are looking for ways to invest in this emerging technology.  One of the more popular AI tools that exist to the public today is Chat GPT. This is an AI chatbot developed by OpenAI and can essentially answer almost any question/request that it receives from writing computer programs to writing business pitches. 

Today, Chat GPT is privately owned, which makes it difficult for the general public to invest directly. However, in this blog, we’ll discuss creative ways on how to invest in Chat GPT. Furthermore, we’ll discuss how to invest in other emerging technologies related AI.

What is ChatGPT?

Developed by OpenAI, Chat GPT, or conversational GPT, refers to a type of artificial intelligence language model known as the Generative Pre-trained Transformer (GPT). GPT is a deep learning neural network that has been pre-trained on enormous volumes of text data to produce replies that resemble those of a human being in response to queries or prompts.

By combining machine learning and natural language processing techniques, the AI program can replicate discussions that are similar to those between humans.  The system has been taught using various databases, such as conversations from social media or books and articles.

There Are Several Publicly-Traded Big Tech Companies That Are Investing in AI

There are several major tech companies that have an invested interest in AI-related technologies, including OpenAI (ChatGPT).  Each company has their own objective on how to leverage AI.  Before we dig deeper in which major technology companies are developing or investing in AI, lets first acknowledge a few advantages and disadvantages of owning company stock in the public markets.

Pros

• Liquid Assets: Stocks are very liquid assets. You can trade in and out of quickly through your online brokerage account.
• Transparency: Publicly traded companies are required to release detailed financial statements. These statements must be filed with the Securities and Exchange Commission (SEC).  This federal agency provides protection to investors by vigorously enforcing the federal securities laws and to hold anyone accountable who may break them.

Cons

• Company risk:  If the company fails to produce certain financial goals that the majority shareholders expected, the company’s stock may drop in value.
• Market Risk:  An individual can experience loss to overall systematic risk, which could negative impact the broader financial markets.

How to Invest in Chat GPT? Look At These Publicly Traded Companies Investing in Artificial Intelligence

• Microsoft (MSFT) – Through Microsoft’s Research AI department, the company is developing tools using natural language based AI.  CoPilot is the name of the technology. CoPilot will be embedded across Office Suite including Word, Teams, Excel, and PowerPoint.  As it relates to OpenAI, Microsoft’s new Bing is running on GPT-4.  Click here if you want to check out the preview.  Separately, Microsoft provided OpenAI with $1B investing in 2019 and $10B in 2023.  According to Semafor, this would put Chat GPT net worth at $29B. Thus, if you own MSFT stock, you can indirectly own OpenAI.

• Alphabet (GOOGL) – Google’s parent company is also heavily investing in its own natural language processing technology.  The company’s response to Chat GPT is Google Bard AI. The company plans to release in the first half of 2023.  The technology has received critical feedback thus far. This includes feedback such as being “worse than useless” and has questionable ethical concerns directly from Google employees.  That said, Bard AI will be a chatbot that is expected to let you do anything from planning parties to answering questions on complex topics.

• Nvidia (NVDA) – In March the semiconductor company announced several initiatives designed to broaden its reach in AI. These initiatives include working with Amazon, Adobe, Google, Microsoft, and AT&T.  The company’s exposure in AI already includes graphic processing units, high performing computing systems, software, and cloud computing services.

Exchange Traded Fund (ETFs) that Invest in AI

ETFs are an investment fund that trades on stock exchanges, similar to stocks.  These tools are designed to track the performance of a specific index, sector, or asset class.  ETFs hold a basket of stocks and offer diversification by investing in a broad range of companies to reduce the overall risk of owning one particular stock, while also offering a low expense ratio compared to mutual funds. Below, I’ve listed a few ETFs that are invest in artificial intelligence.

• ARK Autonomous Technology & Robotics ETF (ARKQ) – the ETF is managed by Ark Investment Management.  Companies within ARKQ are focused on developing new products and services related to energy, automation and manufacturing, materials, artificial intelligence, and transportation.  Some of the holdings this ETF holds include Telsa (TSLA), Iridium communication (IRDM), Kratos Defense and Security (KTOS), Uipath Inc (PATH), and Nvidia (NVDA).
• iShares Robotics and Artificial Intelligence ETF (IRBO) – the ETF is managed by Blackrock. The ETF has exposure to companies developing robotics and AI and is designed to seek long-term growth that can shape the global economic future.  Some of its top holdings include Meta Platforms (META), Spotify (SPOT), Nvidia (NVDA), and Meitu Inc (1357).
• First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT) – the ETF is looking to provide its investors with exposure to AI and robotic industries with growth potential through a diversify lens of global companies.

Besides publicly traded companies and ETFs, there are also mutual funds, venture capital funds, and crowdfunding platforms that are focusing on investing in AI.

BONUS Tip:  How to Invest in Chat GPT? Become an employee at OpenAI and receive equity in the company

My final tip to obtaining company stock of OpenAI is to work at the company.  Typically at start-ups, the company will provide an equity component to its compensation package to be more competitive in the market place.  According to OpenAI’s website, the company has several open roles it is looking to fill including Benefits & Compliance Manager to HR, as well as several other software engineering roles.

Don’t Forget To Do Your Homework

Overall, Artificial Intelligence is one of the fasting-growing sectors in the technology industry.  There are several publicly traded companies that invest in AI today. There are also ETFs, VCs, mutual funds, and crowdfunding platforms.  Before deciding to invest, it critical to do your due diligence and research as well as thinking about diversity your portfolio to reduce your risk.  AI is consider to be a high-risk so its important to consult your financial advisor become making a investment decision.

If you have enjoyed this article and want to learn more about how to invest and gain financial freedom, check out some of my favorite blog posts below.

• Passive Income 101: The Basics + Strategies To Unlock Financial Independence
• Invest Like a Professional With This Simply Dividend Strategy
• 11 Powerful Ways On How To Fight Inflation Today

Live well,

Blue