Which Chat GPT Stock Should You Buy? (Best Chat GPT Stocks)

At the moment, it’s not possible to buy Chat GPT stock, as the company that created it, OpenAI, is not publicly-traded.

However, if you’re interested in the topic of ChatGPT stock, you might also be interested in which companies have invested in OpenAI or are providing technology that makes ChatGPT possible. These companies could benefit from the growth of ChatGPT and OpenAI.

What is ChatGPT?

ChatGPT is a chatbot powered by artificial intelligence (AI) that was initially released as a prototype in November of 2022. ChatGPT is based on GPT-3.5 and GPT-4, which are large language models (LLMs) created by OpenAI.

Immediately after its release, ChatGPT impressed experts and laymen alike with its ability to create impressively detailed text. The chatbot can assist users in a variety of tasks such as writing, translations, coding, learning about new topics, and more.

ChatGPT has almost single-handedly caused a huge spike in public interest for artificial intelligence and its implications for society, and has put significant pressure on tech giants like Google and Meta to accelerate their work on AI technologies.

As of the time of writing, ChatGPT is accessible to users who create a free account. The free version is based on the GPT-3.5 model, but OpenAI also offers a premium version that utilizes the more powerful GPT-4 model. 

How to invest in ChatGPT?

ChatGPT isn’t publicly traded since OpenAI is a private company. So, the public doesn’t have a way of investing in OpenAI or ChatGPT directly. However, there are stocks that are likely to benefit from the growth of ChatGPT and artificial intelligence more broadly. 

Microsoft (MSFT)

Arguably, the most direct way of getting exposure to OpenAI and its products is by investing in Microsoft. This is because Microsoft is a major investor in OpenAI, and is integrating it in products like Bing, Edge, Azure OpenAI, Microsoft 365 and more. 

Microsoft invested $1 billion into OpenAI in 2019, and then made another investment into the company in 2021. In early 2023, Microsoft announced that it was investing an additional $10 billion into OpenAI. Reports have stated that Microsoft was looking to acquire a 49% stake in OpenAI, but this hasn’t been confirmed so far.

Microsoft is currently the second largest company if the world. With a market capitalization of $2.2 trillion, Microsoft is only surpassed by Apple, another US-based tech titan. Microsoft has been a strong performer as of late, as it’s posting a +23.6% year-to-date growth at the time of writing. Will Microsoft continue to climb? Check out our Microsoft price prediction page for MSFT stock forecasts.

Nvidia (NVDA)

You could also get exposure to the growth of ChatGPT by investing in NVIDIA. This is because NVIDIA’s graphics processing units are heavily used in the training of OpenAI’s GPT models. In addition to being used by OpenAI, NVIDIA is also set to benefit from the growth of artificial intelligence technology as a whole.

The spike in interest for AI technology has been one of the catalysts for Nvidia’s impressive rally in 2023. As of April 26, 2023, NVDA has seen a 90% increase in the price of its stock on a year-to-date basis. If you're interested in possible scenarios for NVDA stock's future, check out our Nvidia price prediction page.

Nvidia is currently the seventh largest company in the world, thanks to a market capitalization of $672 billion. 

Alphabet Inc (GOOG)

Investing in Alphabet Inc, the parent company of Google, could also be a good play if you think technologies like ChatGPT will become increasingly lucrative in the future. Google has been investing in artificial intelligence technology for a long time, and established a division dedicated to AI in 2017.

Google has released its own AI-powered chatbot called Bard in response to the meteoric rise of ChatGPT. Bard is based on the LaMDA family of large language models (LLMs).

Although OpenAI’s ChatGPT chatbot is currently more powerful than Bard, it would be foolish to underestimate Google in the field of artificial intelligence. In addition, Google is gradually introducing new functionality to Bard — in April 2023, Bard received an upgrade that made it capable of generating code in more than 20 programming languages.

At the time of writing, Alphabet Inc is the fourth most valuable company in the world, boasting a market capitalization of $1.3 trillion.

AI ETFs

There’s a number of ETFs (exchange-traded funds) that give investors exposure to the artificial intelligence sector. These investment products provide diversified exposure, which can be a benefit depending on your preferred investing approach.  

Some examples of ETFs that invest in AI-related companies include Global X Robotics &  Artificial Intelligence ETF, iShares Robotics and Artificial Intelligence ETF, WisdomTree Artificial Intelligence UCITS ETF, and Xtrackers Artificial Intelligence and Big Data UCITS ETF.

One thing to keep in mind is that different AI ETFs can vary quite significantly in terms of what is considered AI and which companies they invest in. Unlike S&P 500 ETFs which are designed to track the S&P 500 index, the methodology of AI ETFs varies a lot from product to product.

The bottom line — You can’t invest directly in ChatGPT stock, but you can invest in AI

Investing in OpenAI and ChatGPT is currently not possible for retail investors, since OpenAI is a privately held company. However, there’s still ways to indirectly get exposure to the growth of ChatGPT. 

You could invest in Microsoft, which owns a significant share of OpenAI, or Nvidia, which provides much of the infrastructure that makes ChatGPT possible. Alternatively, you could invest in companies like Google which are building their own competitors to ChatGPT, or exchange-traded funds that are designed to provide exposure to the artificial intelligence sector as a whole.