OpenAI, an AI research and development organization has been in the news lately for the controversies that surround its product ChatGPT which is an AI chatbot developed by the firm. The organization was founded in 2015 by the famous billionaire Elon Musk and Sam Altman. They recognized the potential of artificial intelligence in providing a better future to mankind. Over the years, OpenAI and especially ChatGPT have taken over the AI industry. Everyone from school students to office goers are using the AI chatbot to get their work done with ease.
Credits: Investing News Network
OpenAI History:
While the founders of OpenAI realized the potential of AI technology, they were also aware of the potential dangers of it if not developed properly. As a result, OpenAI was formed with the vision of creating AI tools which would be used for the benefit of humanity. OpenAI focused its revenue into creating language based AI models which are capable of understanding and generating human understandable text. The company released GPT 1 in 2018 and has since then released GPT 2, 3 and 4 as well. There are several controversies surrounding the use of this AI chatbot but OpenAI has continued to develop language models. They have been improving their products including ChatGPT to give better results.
The rise in the popularity of OpenAI’s ChatGPT has been significant after the pandemic struck. Students were using it to do their assignments and adults picked up multiple jobs which ChatGPT helped them with. Therefore, employers and teachers among other people have raised questions on the benefits of the AI chatbot. Regardless of its usage, ChatGPT has helped OpenAI gain a significant upper hand in the AI market.
Why invest in AI?
There are several global corporations who have now understood the potential in AI technology. Numerous multinational firms have been spending millions of dollars to get into the AI industry. Some firms have acquired smaller AI corporations for millions. Some of the reasons of the rise in investments in AI technology is:
- AI based technologies are known for being more efficient with processing and manipulation of data. They save the time and resources that companies would otherwise spend doing the same work that AI’s could do in seconds.
- AI can help organizations develop new products and services. They may also improve user experience and help a business run more efficiently.
- AI could save a lot of costs for these firms which have been hugely investing in the AI sector.
- AI can analyze large amounts of data and provide helpful details about it which might help organizations make better decisions.
- AI technology can help companies develop new products and services as well as improve the already existing ones. A lot of features would not have existed in the absence of Artificial Intelligence including many autonomous driving features.
The Stock Valuation:
In the last few years, there has been a massive rise in the investments made by large corporations in the AI industry. OpenAI who have been involved in the industry for a decent number of years and have recently started dominating the industry. As a result, the AI company has been experiencing a massive amount of cash inflow ever since the success of their AI chatbot: “ChatGPT”. A number of big names including Microsoft has invested in the AI company. The browser, Bing has integrated the AI chatbot into its newer versions and it is one of the few ways to access and use GPT-4 for free at the time.
With such positive developments for the company, the prices of their stocks are on the rise. On Friday, April 28th, the company closed a $300 million share sale and are now valued between 27 and 29 billion dollars.
