How to Invest in OpenAI Stock and Other AI Companies in 2023
Investing in OpenAI stock and other AI tech companies in 2023 and beyond offers an exceptional opportunity for everyone that wants to invest their money.
Reflecting on the past, we witnessed the blockchain phenomenon driving the stock market to unprecedented heights from 2018 to 2021.
And today, the spotlight has shifted to tech companies embracing AI, and this has paved the way for monumental growth.
What is OpenAI: Revealing the Future of Artificial Intelligence
OpenAI’s founders include Sam Altman, Reid Hoffman, Jessica Livingston, Elon Musk, Ilya Sutskever, and Peter Thiel, who established the company as a privately owned entity.
Primarily funded by the founders, the lab seeks to advance artificial intelligence and create breakthroughs in robotics.
GPT-4, OpenAI’s most advanced system, represents a significant achievement in the field of artificial intelligence.
OpenAI’s ultimate goal remains the development of artificial general intelligence (AGI), a system capable of solving complex problems at a human level.
In 2020, Open AI secured a $1 billion investment from Microsoft. In January, Microsoft made a significant $10 billion investment in OpenAI, acquiring exclusive licensing rights to GPT-3.
Open AI as a Private Company
Open AI, as a private company, does not have publicly traded stock available for investment on stock exchanges.
And currently, any investments in Open AI are limited to private equity firms and venture funds, so openAI stock is not accessible for public investment at this time.
But there are also rumors that they want to raise capital via an IPO by the end of this year and Open AI stock will become available via your brokerage or trading app.
Investors can also indirectly invest in OpenAI by purchasing shares of its parent company, Microsoft.
By incorporating OpenAI’s powerful GPT-3 and GPT-4 language models into its applications. Microsoft has positioned itself as a key player in the rapidly expanding world of AI.
Microsoft stock price chart past 6 months
The New York Times reports that Microsoft’s multibillion-dollar investment in OpenAI demonstrates its commitment to leveraging OpenAI’s powerful AI chatbot technology for mutual growth and success.
This private status allows OpenAI to maintain greater control over its operations, research, and strategic decisions.
Venture Capital Firms: Investing in OpenAI’s Potential
According to a report, OpenAI recently completed a share sale worth over $300 million, valuing the company between $27 billion and $29 billion
Some venture capital firms have also taken note of OpenAI’s potential and have invested in the company Andreessen Horowitz and SoftBank Vision Fund are two notable firms that have invested in Open AI, as per official documents cited by TechCrunch.
Andreessen Horowitz is known for investing in firms such as Airbnb, Coinbase, Stripe, and GitHub, and on the other hand, the SoftBank Vision Fund is a tech-focused capital fund started by the Japanese conglomerate SoftBank and It has invested in companies such as Uber, WeWork, and Slack.
Microsoft’s Collaboration with OpenAI
As mentioned earlier, OpenAI inked a deal with this tech giant in 2020 to further develop its AI tools and services and this partnership has provided Open AI access to Microsoft’s Azure cloud computing platform, because is one of the most powerful computing clouds in the world.
Microsoft has assisted Open AI in releasing several open-source tools for developers and businesses, aiming to simplify the process of building AI applications.
OpenAI’s Open-Source Tools:
It helps researchers develop and compare algorithms for computers to learn from their experiences. It has diverse environments, like games and robots, to test these algorithms.z
The GPT-3 API
Lets you create apps that understand and generate text just like humans do. It’s perfect for building cool language-based experiences that feel smart and interactive. Whether it’s chatbots, virtual assistants, or storytelling apps.
Is a fantastic resource that offers pre-made tools for training AI agents in exciting and difficult environments. It’s like a playground where developers can create and experiment with their own algorithms.
Is a visualization tool that offers visually engaging images and graphs that provide valuable insights into the model’s performance.
It helps you by giving you pieces of code, guiding you in your programming tasks, and even writing whole programs for you!
To gain indirect exposure to OpenAI and its technology, savvy investors can consider investing in Microsoft. So buying its shares requires a brokerage account, we recommend platforms like eToro or Trading 212 for this purpose.
In the meantime, there are still plenty of other publicly traded AI companies available for investors to choose from.
Top AI Stocks to Consider in 2023
Even though OpenAI stock is not available for public trading, over the past six months, the stock market for AI companies has experienced a remarkable surge and one of the key factors driving this growth is OpenAI’s ChatGPT
Investors can consider investing in other publicly traded companies:
Microsoft Corporation (MSFT)
Microsoft has been investing heavily in AI research and development and has a suite of AI-powered products and services, including Azure Machine Learning and Cortana. The company’s focus on AI is likely to continue driving growth in the coming years.
Nvidia Corporation (NVDA)
Nvidia is a graphics processing unit (GPU) company that makes computer hardware used in AI development. It has developed several advanced GPU architectures which have become industry standards for AI computing
Alphabet Inc (GOOGL)
Alphabet is the parent company of Google and arguably one of the world’s most important AI companies. It has developed several industry-leading products in the field of AI.
Salesforce.com, Inc. (CRM)
Salesforce is a cloud-based software company that is using AI to improve its sales and marketing offerings. The company’s AI-powered products and services have been well-received in the market, which could lead to continued growth in the future.
Amazon.com, Inc. (AMZN)
Amazon is using AI to revolutionize various industries, from e-commerce to healthcare. Its AI-powered products and services, including Alexa and Amazon Web Services, are likely to continue driving growth in the coming years.
C3.ai is an enterprise AI software company that uses advanced AI to transform solutions across multiple industries. The company’s AI-powered software is designed to help businesses increase efficiency, reduce costs, and improve customer experiences.
Tesla is a public company that designs and manufactures electric and self-driving cars, energy storage systems, and solar products. The company’s electric vehicles rely heavily on AI for advanced features such as self-driving technology.
Best Strategies for Capitalizing on AI Stock
Understand the Basics of AI
Familiarize yourself with the fundamentals of artificial intelligence and its potential applications. Sources like AI News, MIT Technology Review, and AI Trends can provide valuable insights.
Conduct Market Research
Explore reports and publications from reputable sources like Gartner, IDC, and Forbes to gain market insights, industry trends, and growth projections in the AI sector.
Diversify Your Portfolio
Consider investing in a mix of AI stocks from various sectors. Research AI software companies like Palantir Technologies, hardware companies like NVIDIA, and industry-specific AI applications like C3.ai.
Stay Informed about AI Advancements
- Stay updated on the latest AI advancements by following research papers and publications from leading institutions Connect such as OpenAI, Microsoft Research, and others.
Analyze Financial Health and Growth Potential
Evaluate the financial health and growth potential of AI companies by analyzing their financial statements, revenue growth, and market positioning. Research companies like Google, Microsoft, and IBM to gain insights into their AI-related investments.
Seek Professional Advice
Consult with financial advisors or experts specializing in AI and technology investments. They can provide personalized guidance based on your investment goals and recommend platforms like Vanguard, Fidelity, or Charles Schwab for investing in AI stocks.
Google’s Parent Company: Influence on OpenAI
Both Alphabet Inc., the parent company of Google, and Microsoft have had significant roles in shaping the development of OpenAI.
Alphabet Inc. has provided financial support and engineering resources to the project, while Microsoft has incorporated OpenAI into its products, such as Azure and Office 365. Additionally, Microsoft and OpenAI have collaborated on projects such as text recognition in digital images because of their shared focus on advancing AI technology.
While OpenAI operates independently and it has received financial support from Alphabet and collaborated with both Google and Microsoft on research projects and the company is still dedicated to developing artificial intelligence that is open and ethical.
Open AI and Google have collaborated on research projects, leveraging their technologies and tapping into a wide network of experts. This collaboration has enabled Open AI to access valuable resources and benefit from their expertise in the field.
Fast forward to late 2022, Google invested approximately $300 million in Anthropic, a company established by former Open AI researchers, according to the Financial Times.
Anthropic has created a sophisticated chatbot named Claude, which has yet to be launched and is seen as a potential competitor to OpenAI’s ChatGPT, generating interest among experts and enthusiasts.
In a recent announcement, Google revealed its plans to launch an AI-powered search engine, which will introduce a redesigned platform that directly competes with Microsoft’s recently launched Bing chatbot. With this new feature, users will be able to ask questions and receive answers with more accuracy and speed. This is part of Google’s effort to further capitalize on its deep learning capabilities and thus allow them to provide better search results for its customers. The company has announced plans to integrate its machine-learning technology into other products as well.
Is OpenAI a publicly traded company?
Open AI is not publicly traded but if Microsoft invests heavily in Open AI, investors can indirectly gain exposure by buying Microsoft shares.
What is the stock price of OpenAI?
Since there is no OpenAI stock, there is no available stock price to check how the company is doing.
Can I invest in OpenAI?
OpenAI is a private company and there is no way for the public to invest directly in ChatGPT or Open AI stock at the moment,
What is the OpenAI stock symbol?
There is currently no OpenAI stock symbol as the company is not publicly traded
Investing in AI stocks can be an exciting and potentially rewarding venture. Private companies like OpenAI are at the forefront of innovation, making them attractive investment options.
Diversify your portfolio, stay updated on AI trends, and seek guidance from financial experts.
And remember, investing involves risks, so do your research and make well-informed decisions. Good luck on your investment journey!