Share prices are skyrocketing on ChatGPT deals, with Buzzfeed’s soaring 200% last week. Big tech is embracing AI, with Alphabet releasing its own LaMDA model soon and Meta embedding AI deeper into its social media business. Investors are excited, but analysts are wary. Are there signs reminiscent of past bubbles?
– Buzzfeed’s share price surged 200% last week after announcing it will use ChatGPT for its content creation.
-Bank of America analysts warned Buzzfeed’s AI integration will not be as profitable as investors think.
– Meta said it will integrate AI further in its social media business and Alphabet announced its ChatGPT competitor LaMDA will release to the public soon.
The ChatGPT hype pumping AI
Merely two months after its launch, OpenAI’s chatbot that has taken the world by storm crossed the 100 million mark for monthly active users in January, growing at a historically unprecedented rate for a consumer application, a UBS study found. The next-gen technology is revolutionising artificial intelligence, creating ripples across industries as new use cases for the chatbot are explored.
But while Wall Street feels bullish about the sector, a noticeable pattern is emerging. Investors and big tech seem to be fuelling a new bubble in AI financing, with company share prices shooting up on announcing plans to implement AI or ChatGPT-related technology.
Shares of software maker Versus Systems Inc. [VS] skyrocketed as much as 447% during trading on 1 February as the company announced a deal to bring its online audience engagement technology to AI fintech Resolve Debt Inc.
Opto reported earlier that Microsoft Inc. [MSFT] invested $10bn into OpenAI’s ChatGPT, and semiconductor stocks are now surging on their potential to provide computing power for ChatGPT functions.
