ChatGPT “kills” Google’s dominance
Shark Tank Star Kevin O’Leary said he’s trying to decide whether to invest in ChatGPT’s next round of funding.
“I’m extremely fortunate to be offered to downsize some equity, but it’s a $29 billion valuation with virtually no earnings…I’m looking at it,” O’Leary said on Yahoo Finance Live (video above ).
OpenAI was last valued at $29 billion in a funding round in early January, led by a $10 billion snail backed by Microsoft. The tech giant integrates OpenAI’s ChatGPT AI into its Bing search engine.
“We’ll probably give ChatGPT a 1% weight in the portfolio, which should hold this, although I hold my nose on the valuation. I’m choking,” O’Leary added.
Two elements of ChatGPT caught the attention of O’Leary, a savvy businessman and investor from Canada. The first is the raw downloads of ChatGPT technology, which point to significant market share gains over AI competitors in the future.
According to recent data from Demand Sage, ChatGPT surpassed the 100 million user milestone in January.
“Well, tell me, that is [the downloads] don’t kill Google, and that’s it,” O’Leary said.
Another key selling point for O’Leary is the financially lucrative recurring revenue associated with ChatGPT. According to O’Leary, some of his employees subscribe to the premium ChatGPT feature for $20 a month.
The feature allows users to access the service when the free version isn’t available – which is a common occurrence.
“They’re suddenly making revenue because they’re so popular,” O’Leary said.
Ultimately, O’Leary believes that OpenAI-powered ChatGPT could be a game changer in the search engine market where Google has reigned supreme. It’s this kind of hype that set nearly all AI stocks on fire in February.
C3.ai shares have soared 20% in February alone. Microsoft stock is up 5% this month. Alphabet — thought to be behind Microsoft in the AI wars with Bard — has seen its shares fall 5% in February.
“While it initially feels like Google has pushed Bard into the market with the Microsoft ChatGPT deal and the event overshadowing the company, this race is getting long and we expect Google, as well as Apple, Meta and other tech Experts will invest billions in this AI arms race in the years to come,” Wedbush tech analyst Dan Ives said in a note.
Sarah A Smith is a producer and booker at Yahoo Finance.
For more on the latest AI moves in the markets, check out Yahoo Finance’s Tech Editor’s Latest Analysis Dan Howley.
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https://finance.yahoo.com/news/shark-tanks-kevin-oleary-chatgpt-is-killing-googles-dominance-185504919.html ChatGPT “kills” Google’s dominance