The artificial intelligence (AI) space got a big shot in the arm in late 2022 after a chatbot called ChatGPT was launched. Developed by OpenAI, ChatGPT had over one million users within a week of its November launch. By the end of January, ChatGPT had over 100 million users, making it the fastest-growing consumer app in history.
OpenAI’s ChatGPT is a free service known as generative AI, a platform that can generate novel content—text, sounds, and images—from simple prompts. Since the launch of ChatGPT, generative AI has entered the mainstream, with companies such as Microsoft announcing it was bringing OpenAI’s ChatGPT chatbot to its Bing search engine.
In an effort to take the wind out of the sails of Microsoft’s announcement, Google revealed its own rival to ChatGPT, Google Bard. The company was a little light on information but said it would provide additional detail on the future of its AI tech at a later date.
With the growing buzz surrounding generative AI technology and recent launch of OpenAI’s ChatGPT, its adoption by Microsoft, and eventual roll-out of rival Google Bard, many are wondering what the difference is between these chatbot platforms and how they will change the face of the next generation of search.
Both OpenAI’s ChatGPT and Google Bard AI are both generative AI models but there are some key differences.
What Is OpenAI’s ChatGPT?
In November 2022, OpenAI launched ChatGPT. The generative AI software app uses machine learning to generate creative and advanced human-like responses to text prompts.
ChatGPT learns how to create responses by training on massive amounts of data gleaned from content on the Internet, this includes books, academic journals, encyclopedias, and blogs. OpenAI also has access to Twitter’s database, which it used to train ChatGPT.
There are some limitations to ChatGPT, however. It can only access or use data prior to 2021; that’s the year in which the training stopped.
In just a short period of time, users have been amazed at how ChatGPT can understand questions and come up with novel responses. So much so that users felt like they were talking to a real human being. Users are also finding it difficult to determine if a poem, song lyrics, short story, or piece of art is made by ChatGPT or a person.
Based on the huge success of ChatGPT, OpenAI is already working on a more powerful version of the generative AI technology called GPT-4, which is set to be released in early 2023.
How Is Microsoft Using ChatGPT?
Microsoft was an early investor in OpenAI. In 2019, it invested $1 billion in the small San Francisco company. Since then, it has invested another $2 billion. The $3 billion investment went a long way in helping develop the AI chatbot. It also meant that Microsoft could develop and deploy new products based on the then secretive technology.
Microsoft is in discussions to invest another $10 billion in OpenAI as it looks to develop the technology and integrate it into its own products, allowing it to take on Big Tech competitors like Google, Apple, and Amazon.
The new generative AI technology could transform everything from online search engines like Google to digital assistants like Siri and Alexa.
To that end, on February 7, Microsoft announced it was “reinventing search with a new AI-powered Microsoft Bing and Edge,” to deliver better search, more complete answers, a new chat experience, and the ability to generate novel content.
Satya Nadella, Chairman and CEO of Microsoft said, “AI will fundamentally change every software category, starting with the largest category of all—search.”
Nadella also believes that as much as 10% of all data could be AI generated in just three years. This could result in as much as $7 billion in sales for Azure, Microsoft’s cloud computing product.
What Is Google Bard AI?
Google is the world’s most popular search engine, controlling 93% of online searches (versus 3% for Bing). It’s not going to sit idly by and allow Microsoft to erode that lead. A day before Microsoft’s announcement, Google preemptively unveiled its own AI chatbot, called Bard.
Like ChatGPT, Bard is designed to take prompts and simulate conversations with humans. Bard can be integrated into Google’s own search tools the same way Bing uses ChatGPT. It can also be integrated into websites, apps on desktop and mobile, message platforms, and other digital systems.
Google CEO Sundar Pichai describes Bard as an “experimental conversational AI service that “seeks to combine the breadth of the world’s knowledge with the power, intelligence and creativity of our large language models.”
Unlike ChatGPT though, which stopped training in 2021, Bard uses up-to-date information—although the new version of ChatGPT-4 could do the same when it’s launched in early 2023.
That doesn’t mean it’s all smooth sailing for Bard. In its first demo, Google Bard made factual errors about new discoveries from the James Webb Space Telescope. It’s important to keep in mind that Bard and ChatGPT are powered by AI, so mistakes are possible.
Bard hasn’t been officially launched yet and is being tested by a small group of people with an expected wider launch to be announced in the coming months.
What Is the Best Way to Invest in Disruptive, Innovative Trends?
OpenAI’s ChatGPT is the first truly disruptive technology in the AI chatbot space. But it won’t be the last. The industry is only months old and is already projected to expand at a compound annual growth rate (CAGR) of 38.1% by 2030, hitting $1.59 trillion.
How much further OpenAI’s ChatGPT and other generative AI technology will fuel the growth of AI is impossible to predict just yet. One thing is certain though, it will open the door to interesting, new investing opportunities.
You cannot invest directly in OpenAI, but there are other companies directly tied to generative AI technology, including Microsoft and Google parent Alphabet. There are a large number of stocks with exposure to generative AI technology, including semiconductors, network equipment providers, cloud providers, and Internet of Things (IoT).
A Diversified Approach to Investing in Disruptive Technology
If you’re looking to tap into disruptive and innovative trends that are fundamentally transforming our world, consider a diversified approach with the Evolve Innovation Index Fund (EDGE ETF).
EDGE ETF provides investors with access to global companies that are involved in disruptive, innovation themes across a broad range of industries, including: FinTech, 5G, Genomics, Automobile Innovation, Robotics & Automation, Cloud Computing, Cyber Security, and E-Gaming & E-Sports. EDGE ETF provides equally weighted exposure to categories consisting of companies that are leading innovation across multiple sectors. For more information on EDGE ETF, visit our website at https://evolveetfs.com/edge/.
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