In January Microsoft invested $10bn in OpenAI, the startup that launched ChatGPT with a $1bn investment back in 2019. ChatGPT - the third-generation Generative Pre-trained Transformer, is a neural network machine learning model trained using internet data to generate any type of text. It became a sensation thanks to its ability to crack jokes, write poems and essays, and create articles based on user requests, and it managed to reach 100 million users within just two months after its release in November 2022.
Microsoft’s investment in OpenAI also led to a positive impact, with shares climbing up by 4%. The stock price for Microsoft has increased by 17% in the past three months alone.
That was just the tip of the iceberg, however. Versus Systems, a small B2B technology company, saw a 400% growth in January 2023. In February 2023, the ChatGPT craze had a major effect on the AI market, prompting a sizeable stock rally:
- SoundHound, an A.I. speech recognition company gained 40% in value;
- BigBear.ai’s stock price surged by 21%;
- A software firm C3.ai saw an 11% increase.
Notably, C3.ai and SoundHound have both doubled their market value in a year, while BigBear.ai amassed a 700% growth in the same timeframe.
As reported by the Economist, Pete Flint of NFX, another VC firm, now counts more than 500 generative-ai startups, excluding OpenAI. They have so far collectively raised more than $11bn by February 2023.
According to an eMarketing trends survey conducted by JPMorgan, almost 53% of all traders believe that A.I. will likely have the greatest impact on trading in the next three years.
As calculated by IDC and Bloomberg, by 2025 the AI market (hardware + services) will grow to $90 billion from $36 billion in 2020.
“We think the early success for chatbots could attract more technology talent, and drive faster adoption by enterprises and governments,” said UBS to Trending Topics.