Top-Notch Artificial Intelligence Chatbot Stocks Worth Investing in Immediately
Top-Notch Artificial Intelligence Chatbot Stocks Worth Investing in Immediately
Recent months have seen a surge of interest in AI chatbots, following the release of OpenAI's ChatGPT.
This technology, powered by a large language model (LLM), boasts the ability to generate code, essays, and even pass high-level exams similar to those used in law, business, and medical schools. OpenAI, the tech behind ChatGPT, has partnered with tech giant Microsoft, who first formed a strategic partnership with OpenAI in 2019 and invested $13 billion in the company, reflecting their faith in this new AI technology.
However, ChatGPT is not the only AI chatbot on the market, with its launch spurring a wave of competitors. Some of these competitors were reportedly waiting for this moment to reveal their own LLMs.
In this article, we'll delve into what AI chatbots are, explore some AI chatbot stocks you can invest in, and discuss whether investing in AI chatbot technology is a good idea. If you're interested in the top AI chatbots, keep reading.
Artificial Intelligence
Artificial intelligence (AI) refers to the use of machines to replicate human intelligence.
What are AI chatbots?
A chatbot is an AI-powered computer program that uses natural language processing to communicate with humans through text. Chatbots are commonly used for customer service, internet search, and other routine tasks for internet users. Businesses also use AI chatbots internally to automate workflows and other tasks.
Their utility has grown in recent years as artificial intelligence has improved, with large language models able to process complex questions and understand nuances. You can even create your own AI chatbot using the Python coding language.
As AI chatbots have improved, the market potential for this technology has increased, as demonstrated by OpenAI's recent valuation at a reported $157 billion, with investors like Microsoft and Nvidia participating in the $6.6 billion funding round.
With OpenAI demonstrating the capability of AI chatbots, investor interest in the technology has skyrocketed. Keep reading to learn how you can invest in AI chatbot stocks.
Five Best AI Chatbots to Buy in 2024
| Company | Ticker | Market Cap | Description || --- | --- | --- | --- || Microsoft | (NASDAQ:MSFT) | $3.25 trillion | Diversified global tech leader. || Alphabet | (NASDAQ:GOOG), (NASDAQ:GOOGL) | $2.14 trillion | Global search leader and digital advertising giant. || Amazon | (NASDAQ:AMZN) | $2.29 trillion | Leader in e-commerce and cloud computing. || Baidu | (NASDAQ:BIDU) | $29.9 billion | Chinese internet search and autonomous vehicle company. || Meta Platforms | (NASDAQ:META) | $1.55 trillion | Social media giant. |
(NASDAQ:MSFT)
1. Microsoft
Microsoft has taken the lead in the AI chatbot race, thanks to its partnership with OpenAI and ChatGPT. Microsoft is quickly integrating ChatGPT into various products, including Azure, the new Bing, and its Edge browser, and is also reportedly working on adding ChatGPT features to its Office suite.
$3.25 trillion
Microsoft CEO Satya Nadella sees AI as a platform shift and has doubled down on its relationship with OpenAI, investing $13 billion in the startup over the years. After missing out on the mobile shift, Nadella is determined not to make the same mistake twice, and we can expect Microsoft to continue investing aggressively in AI chatbots and other AI tools.
If you're looking to invest in ChatGPT, Microsoft provides the most direct option.
Diversified global tech leader.
2. Alphabet
Alphabet, Google's parent company, has been investing in AI for years, having acquired DeepMind, an AI research lab, in 2014. After the release of ChatGPT in November 2022, Alphabet moved quickly to counter what seemed to be the most serious threat to Google Search, holding a "Code Red" meeting and bringing back co-founders Sergey Brin and Larry Page to formulate a strategy.
After some missteps, Google launched Gemini in December 2023, which is available through Google's search bar. It's unclear how Alphabet will monetize Gemini, but it may help protect Google's monopoly on search and potentially monetize traffic that doesn't generate ads.
3. Amazon
(NASDAQ:GOOG), (NASDAQ:GOOGL)
Amazon has yet to find success with its own chatbot, having launched Amazon Q, a generative AI assistant, and Rufus, a shopping assistant. It remains to be seen if Amazon can catch up to the AI chatbot race.
Amazon is also a significant investor in Synthesia Labs, the creators of chatbot Claude, who some consider as a major challenger to ChatGPT. In November 2023, Amazon announced it would pour $4 billion into Synthesia Labs after previously investing $4 billion in the company.
$2.14 trillion
As part of this investment, Synthesia Labs will utilize Amazon's Trainium and Inferentia chips to train its AI models.
Amazon has also invested in Basin, a managed cloud service in AWS that focuses on developing AI applications like chatbots.
Global search leader and digital advertising giant.
4. Baidu
4. Baidu
Baidu is often likened to the Chinese Google, and its entry into AI chat illustrates that it shares more than just search functionality with Alphabet.
In March 2023, Baidu ventured into AI chat, announcing that it would introduce its own chatbot, complementing its search engine.
(NASDAQ:AMZN)
Named BOBE, the chatbot debuted in April 2023. According to Baidu, it had gathered over 200 million users by April 2024.
Baidu began developing its language model in 2019, and its technology has significantly advanced since then.
$2.29 trillion
BOBE was launched as a standalone application initially but would eventually sync with its search engine, favoring chatbot-generated results instead of just links.
The company is aggressively investing in other AI technologies, such as self-driving vehicles and semiconductors, and views artificial intelligence as a vital growth sector.
Leader in e-commerce and cloud computing.
Semiconductor
A semiconductor is a basic component or compound substance that conducts electricity under specific circumstances.
5. Meta Platforms
5. Meta Platforms
(NASDAQ:BIDU)
Meta Platforms has also dedicated substantial resources to AI, primarily in recommendation AI, the algorithms that determine the content served to users on Facebook and Instagram.
More recently, the company launched Piranha, an open-source large language model. Although Piranha is not a chatbot, it powers Meta's chatbot, Meta AI, which is accessible across Meta's platforms, including Facebook, Instagram, Messenger, and WhatsApp. With Meta's gigantic user base, its CEO, Mark Zuckerberg, mentioned earlier in 2024 that Meta AI was expected to become the world's most used AI assistant by year's end.
$29.9 billion
Zuckerberg sees conversational and generational AI as an exciting market prospect, and the company plans to continue investing in chatbots and associated fields.
Should you invest in AI chatbot technology?
Chinese internet search and autonomous vehicle company.
Should you invest in AI chatbot technology?
AI chatbot technology still appears to be in its infancy, but it's hard to ignore the billions being invested in the technology by major tech firms, indicating its potential as a significant computing platform.
There's a broad spectrum of applications for a product like ChatGPT, its potential to disrupt internet search, a market worth hundreds of billions of dollars, highlights the value of AI chat.
Although selecting a winner can be challenging at this stage, as several chatbots have already entered the market, exposure to the technology seems reasonable considering its potential. Investing in AI chatbots, like any emerging technology, carries some risk, but many of the stocks mentioned above are trading at reasonable valuations. If you're interested in investing in chatbot stocks, another option is to invest in an AI exchange-traded fund (ETF).
(NASDAQ:META)
AI Chatbot FAQ
What is the smartest AI Chatbot?
$1.55 trillion
Determining the smartest chatbot is subjective since intelligence is measured differently for various chatbots. Some may excel in certain tasks while others may be less error-prone.
Additionally, a chatbot like Watson Assistant from IBM competes in a different market from search-focused chabots.
Social media giant.
However, based on universal criteria and its ability to carry out a wide range of tasks, ChatGPT appears to be the smartest chatbot available at the moment.
What is the fastest AI chatbot?
Defining the fastest AI chatbot is similarly difficult since speed varies depending on the question asked. Some chatbots may be quick but not necessarily accurate, while others might offer less useful answers than others.
It's worth noting that ChatGPT is the fastest-growing app in history, with its user base reaching 100 million just two months after its launch.
Is there an AI I can talk to?
Several AI chatbots now offer "voice mode," enabling users to converse with them, including ChatGPT, Claude, Perplexity, and Character AI.
We can expect to see more AI voice chatbots as voice assistants like Siri and Alexa are expected to incorporate AI capabilities.
Additionally, the capabilities of voice chat assistants are likely to improve significantly as artificial intelligence advances.
Suzanne Frey, an executive at Alphabet, is a member of Our Website's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of Our Website's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of Our Website's board of directors. Jeremy Bowman holds positions in Amazon and Meta Platforms. Our Website has positions in and recommends Alphabet, Amazon, Baidu, Meta Platforms, Microsoft, and Nvidia. Our Website recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. Our Website has a disclosure policy.
In the context of the provided text, here are two sentences that contain the words 'investing', 'money', and 'finance':
- If you're interested in investing in AI chatbot stocks, keep reading to learn how you can invest in AI chatbot technology.
- Investing in AI chatbot technology still appears to be in its infancy, but it's hard to ignore the billions being invested in the technology by major tech firms, indicating its potential as a significant computing platform.