Categories: General Market Commentary- DPC
Topics: General Market Commentary- DPC

Is ChatGPT the Next Big Investment Opportunity?

Write an article explaining exactly what ChatGPT is and how it works.

“ChatGPT is a large language model developed by OpenAI. It is a type of neural network that has been trained on a massive dataset of human-generated text, allowing it to generate human-like responses to a wide range of prompts.”

The first sentence is the prompt I entered. The paragraph after it is the first in a seven-paragraph response that was generated as a result. 

This is what ChatGPT, a chatbot that was launched in November, does and what it’s been gaining massive amounts of attention for since its debut. A chatbot, in essence, is software that conducts online conversations in place of a human agent. They’re meant to simulate human speech and are famously used in customer service, sales, and marketing. 

If you were online in the early 2000s and used AOL instant messenger, you might remember the instant messaging bot SmarterChild. 

This is something like a modern-day version of that. 

This kind of technology falls under the umbrella of artificial intelligence. If you use something like Alexa or Siri, you’re already familiar with technology that’s in the same neighborhood. 

Even so, ChatGPT is the first interaction many people are having with what’s called Generative AI. This class of artificial intelligence takes existing data (images, audio, or in the case of ChatGPT, text) and uses it to make something new. Since its debut, ChatGPT has been used to generate everything from poetry, to program code, to news articles, all to varying degrees of success. 

Like you see with any new technology, capitalists and companies are eyeing how it can be used to make a profit. OpenAI, the research company that created ChatGPT, has already received $1 billion in funding from Microsoft. 

Frame AI, out of New York, helps companies use AI to address customer service concerns. It has just shy of $18 million in funding so far. 

MoveWorks provides AI platforms that help resolve workplace requests to large companies. Think about things like helping employees who’ve been locked out of accounts or providing support to new employees who have questions and you get the idea. MoveWorks has raised over $300 million in funding. 

Those are just a few examples in this fairly new, but fast-growing sector. The market will likely be seeing a lot more over the coming years. 

In some ways, this boom is what you see with all kinds of tech that gets labeled as disruptive when first emerging. 

Countless companies will try to grab a slice of the pie but only a few will be able to make it to the top. Think of all of the competitors that household names like Uber, Spotify, and Zillow left behind, and it’s easy to see how that cycle will repeat with technologies like chatbots and generative AI. 

With it still being the early days for this technology, companies are still coming up with new and novel ways for it to be used. Once the hype dies down, the true stars in the sector will begin to emerge and the best investment opportunities will start to reveal themselves. 

It’s a sector we’re keeping an eye on here at Daily Profit Cycle. Next week, I’ll have a more in-depth article about what this technology is capable of. I’ll also have some real-world examples of how it’s being put to work and what companies are doing to make a profit from it, so stay tuned.

Ryan Stancil
Editor, Daily Profit Cycle