Race for Artificial Intelligence
Can you guess how long it has taken ChatGPT to gain 1 million followers? While it took two years for Twitter, four years for Netflix, and three months for Instagram, Open AI's ChatGPT took only five days to reach a million users.
The trend in the financial markets has overwhelmingly been Artificial Intelligence, and it is taking the technology industry by storm. The lackluster performance in index funds and mega cap companies have veered investors into mid cap AI stocks. The main beneficiary of this trend has been C3.ai Inc. (NYSE: AI). C3.ai has increased by over 140% the past month, and it shows no signs of stopping as the trend of AI, mostly boosted by ChatGPT, continues to grow. Is this huge increase justified? The CEO of C3.ai, Thomas Siebal, has publicly stated that their business model is not directly involved with ChatGPT. Also, the company itself is not profitable, with $69 million in net losses in the last quarter alone. The stock is down over 80% since its IPO. Another example is Buzzfeed (NASDAQ: BZFD). BZFD took to this trend immediately, and announced in a press release that it will work with the creator of ChatGPT in future media content. The stock soared more than 300% following the news.
Can you guess how long it has taken ChatGPT to gain 1 million followers?
Google and Microsoft are the biggest investors in the Artificial Intelligence trend, investing billions into the creation of their own AI into their respective search engines. While it may seem safe to believe in these recognizable tech companies to succeed in AI, that may no longer be the case. Google's Bard AI launched recently in order to compete with OpenAI's ChatGPT. Their launch event failed when the AI answered incorrectly to one of their questions. Google fell more than 8% following the event, and wiped out more than 100 billion in market capitalization. The AI arms race is in full effect to start off the new year, and it is only a matter of time until more companies start to use AI in their marketing and business models.
By Pratik Patel