It's nearly impossible for investors to ignore the ChatGPT-driven hype, which sparks buying frenzy in artificial intelligence stocks. ChatGPT is estimated to have reached 100 million monthly active users in January, just two months after launch, making it the fastest-growing consumer application in history, according to a UBS study last week.
Shares of C3.ai Inc, BigBear.ai and SoundHound AI have gained sharply year to date as artificial intelligence becomes a new buzzword on Wall Street with the viral success of ChatGPT chatbot, attracting interest from retail punters.
Analytics firm BigBear.ai has surged more than 800% this year while software firm C3.ai and conversation artificial intelligence company SoundHound have more than doubled year to date.
Major tech names like Microsoft, Google parent Alphabet, and Chinese tech giant Baidu have all taken steps in recent weeks to show they're trying to harness the technology underpinning OpenAI's ChatGPT.
In January, Microsoft agreed to pour $10 billion in OpenAI, one of the largest startup investments ever. In addition, less than three months into 2023, multiple generative AI companies have raised or are in talks to raise upwards of $700 million cumulatively.
Getting ChatGPT into the little-used Bing is likely to give Microsoft a considerable edge over its Big Tech rivals and lift its share price, analysts have said. Shares have jumped 7% year-to-date, although investors' expectation of interest-rate cuts later this year has helped most tech stocks to rally in 2022.
Baidu ADR has surged more than 24% this year. The Chinese largest search engine company affirms it’s on track to publicly roll out its ChatGPT-like service in March, stoking anticipation around potentially China’s most prominent entry in the race to create lifelike AI bots.
The company said it was naming the service “Wenxin Yiyan,” or “Ernie Bot” in English. Baidu should complete internal testing in time for next month’s launch, it said in a statement.
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