OpenAI is not a publicly traded company, meaning purchasing stocks in ChatGPT as a direct investment isn't possible.
Yet, you still might want to find a way to access and buy ChatGPT stock and AI technology.
After all, it has made a big impact on companies around the world and many people are interested in buying a piece of it.
If you're eager to get exposure to AI companies that have contributed to an AI revolution, such as the OpenAI company, you'll need to consider a few key tips.
In this article, I'll look at how to buy ChatGPT stock, what you need to be aware of, the pros and cons, and some of the ways you might be able to invest in it.
How the AI stock market works
One of the first steps you'll need to take is to consider how the AI stock market functions.
It's possible to purchase AI stocks, and stocks in general, if they're listed on the major stock exchange. Many companies have AI stocks listed on this exchange, and there are several ways you can purchase them, such as through a broker.
For ChatGPT stock, investing in companies related to the OpenAI company is the only way to do this at the moment.
Do your homework
We've established that OpenAI isn't a publicly traded company. This fact means it won't have a public stock price. However, when looking at publicly traded companies linked to OpenAI, you can indirectly invest in ChatGPT.
For this, you'll need to research the related companies to get successful exposure to ChatGPT stock. You also need to remember from the start that with any investment, your money could go up as well as down and there are never any guarantees. You could lose it all together.
A couple of examples you should keep on your radar include Microsoft, Nvidia and Perion Network. When you dig deeper into these companies, you'll see that they are all involved with OpenAI, either directly or indirectly.
Yet although Microsoft has a partnership with OpenAI, Nvidia's graphics processing units train models like ChatGPT, and Perion Network is partnered with Bing (which ChatGPT powers), each is a unique company.
Investing in one of these companies over the other may expose you to risks if you're unfamiliar with them. It makes sense to look closely at the following factors before you invest:
✅ Performance and business model
✅ Debt and equity return
✅ Market position and revenue growth
✅ Product portfolio and partnerships
✅ Long-term vision and market demand
✅ The scalability of each company
These factors can help you find out a little more about the stocks you'd like to invest in, and keeping an eye on the performance even after your purchase is key.
The types of AI investment methods available
You may have heard of exchange-traded funds and mutual funds, these are just two ways you could choose to trade in AI stocks.
Exchange Traded Funds (ETFs)
Your ETF will let you purchase a diversified portfolio or selection of AI company stocks that you can pay for with lower fees than other investment methods. Since they diversify your portfolio, they lower your risk and ensure you spread all investments across several stocks focused on artificial intelligence companies.
Mutual Funds
You can also indirectly invest in AI companies such as OpenAI through mutual funds. Mutual funds tend to have greater fees than exchange-traded funds, but you'll not have to invest in or select individual companies alone. Instead, you'll have a fund manager to select your AI company stocks. This investment vehicle differs from ETFs in that it brings together funds from several investors.
Three stocks to consider
I've briefly touched upon the importance of researching OpenAI stock-related companies and three stocks you could consider include Microsoft, Nvidia and Perion Network stock options.
Microsoft
Microsoft is a tech giant that has invested in OpenAI. It has also formed a partnership with OpenAI, looking ahead to its Azure platform enhancement and aiming to develop AI technologies for this purpose. A further partnership saw Mircosoft increase its investment and partnership in 2023.
After it heavily invested, its integration and use of OpenAI technology gave users Microsoft 365 Copilot, with unique features such as email thread summarisation and reply suggestions.
Microsoft stock is an ideal investment option for reasons other than its partnerships with OpenAI. This company's cloud computing services are recognised across the globe and are streamlining data and storage options. Its goal is to ramp up their presence in the search engine market using ChatGPT with Bing.
Nvidia
Nvidia is a formidable technology company that distributes the components for AI platforms. OpenAI used more than 10,000 graphics processing units Nvidia creates for ChatGPT.
These units work to train large language models. It's easy to see the link between these two technology companies; Nvidia greatly benefitted from the AI revolution, and OpenAI fulfilled its need for sophisticated technology.
The company is also linked with OpenAI, having collaborated on multiple technologies. Some examples include projects that involve the development of AI frameworks like PyTorch and TensorFlow.
Perion Network
The Perion Network, in its use of generative AI, is a company you may invest in to access ChatGPT stock indirectly. The company is using the technology to facilitate the production of audio ads that are AI-voice customisable.
Now, Perion is not directly linked to OpenAI, but it is partnered with Microsoft. Its strategic partnership with Microsoft advertising reflects an indirect link to the ChatGPT creators.
Its combined use of generative AI and links to Microsoft make this another company whose stock you may consider investing in.
How to trade OpenAI stock
With the three related OpenAI companies in mind, you may be ready to begin trading stocks in companies linked to artificial intelligence.
If you've completed your research and want to get started, here's how to trade OpenAI stock.
Create a trading account
You'll need to create a brokerage account as your first step. Of course, many types of brokerage account options are available to you, and each offers different advantages. There are different fees to watch out for too.
Consider the following steps when choosing and creating a trading account.
Look carefully at the options available
You should look for brokers that offer AI-related stocks in companies linked to OpenAI. Some examples of platforms include eToro, AvaTrade, IG, Interactive Brokers and more.
Beyond considering whether the broker will allow you to trade OpenAI-related stocks, it's worth acknowledging the trading fees for each platform. Some platforms may charge a commission; others will charge account maintenance and transaction fees.
Each will use a different payment structure. For instance, you'll find that some broker platforms will charge you lower fees if you make certain trades — some exchange-traded funds might be fee-free with specific brokers, or if you make larger order sizes, the same may apply.
Sign up to the account
You're now ready to sign up to the brokerage account. Begin by understanding the risks involved when you sign up for the platform. Costs will be involved when you trade a position, reflected in the spread cost. Once you're familiar with the risks, fill out the application form.
Some forms will ask you questions to acknowledge your trading knowledge level. You will also need to have information about yourself at the ready. For instance, you will need to provide your date of birth, full name, contact information and national insurance number. You may also need to provide a driver's licence or passport for identity verification.
You'll notice that some brokerage accounts will need information about your income. They'll request this information to comply with the Financial Conduct Authority (FCA) regulations.
Once you've completed the form, the platform will process the information. They'll let you start trading stocks from the AI sector quickly.
Fund your account
The final step for creating a brokerage account is to fund it. Of course, each platform will have specific expectations for when you fund the account. You'll have to pay instantly or when you open a trading position.
Funding your account is possible with a few options. You can complete a secure bank transfer by sending money from your bank account to the broker account. Alternatively, you’ll be able to use a credit or debit card. To use a debit or credit card, link the card to the account.
You'll also be able to pay through PayPal or e-wallet services. Remember that the payment method will vary from broker to broker, so it's worth checking to ensure your method is compatible with the platform you wish to use.
Buy and make a trade
You can now trade with AI stocks with your newly created brokerage account. Now, you've already established the market you want to invest in. You'll now need to consider the amount of capital you want to put forward for your investment and take a position.
It's up to you whether you want to take a large or small position on the AI companies related to OpenAI. However, you'll need to consider a few factors. For instance, you should consider the fees, potential minimums that may apply and the stock price. You also need to keep in mind the risk involved – there's no guarantee you will make a profit.
Keep in mind that when you buy AI stock, other fees may apply. You may need to pay inactivity fees if your trading activity stops for a certain timeframe.
At this stage, you're going to have to analyse the AI stocks. The market analysis tools will help you review the performance, news and financial information of the stocks you want to buy and trade. Then, to place your trade, choose the stock and the type of order. Select the number of shares and confirm the trade.
What to do after purchasing AI stocks
Once you've purchased AI stocks, you'll need to consider any market movements and monitor your positions. You'll simultaneously need to check news related to the stock you've purchased. For instance, you might have purchased stocks in Microsoft. In that case, keep up to date with relevant updates and news that may affect the value of this stock.
You'll then need to establish specific targets. For instance, consider whether you're looking for short-term growth over gains over the long term. This target will help you decide how long you want to own the stock.
It's important to refine your strategy, which you can do with market and limit orders. With a market order, you'll sell the stock at the optimum price. You'll purchase or sell the AI stock at the current price, no matter the cost.
With a limit order, you'll set the price yourself. This method means you can purchase or sell the AI stock that may be lower than the price in the market. You've also got the option to use stop orders to sell or buy the stock when it gets to a specific price, limiting your losses or protecting your profits.
Tips for trading
Trading AI stocks can be complex if you are unaware of how it works. If you don't feel confident doing it on your own, you could speak to a broker or a financial advisor, although there may be charged for this. Here I've gathered a few tips to help you:
✅ Make diverse investments: diversifying your portfolio is important. This method involves minimising risks by investing in several AI socks. As a result, it won't matter if one stock performs badly; you'll have spread your risk and can rely on other investments.
✅ Use specific strategies: you're going to need to use specific strategies to succeed in AI stock trading. For instance, you might consider value investing or momentum trading. Value investing involves looking for AI stocks that may be undervalued but will likely grow over a long period. Momentum trading requires you to capitalise on movements in price that happen over a short period.
✅ Purchase stocks of companies that use artificial intelligence: in addition to the three companies mentioned, you may consider investing in companies that use AI. Some examples include Atlassian and Salesforce. While Atlassian is an OpenAI partner and uses generative AI in its offering, Salesforce created EinsteinGPT by integrating with OpenAI.
Buying OpenAI and ChatGPT stocks: my takeaway
The AI boom is significant, and many investors aim to invest in OpenAI and ChatGPT stock. Even though it's currently not on the market and you cannot directly buy stock from OpenAI, remember that you can indirectly invest through other methods.
It's not something to be entered into lightly, especially if you're a beginner, and if you're not confident you could use an expert to help you. However, the tips highlighted in this article should be a good starting point.
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