ChatGPT 3rd Anniversary: A Look Back at the Launch

The Rise of ChatGPT and its Impact

On November 30th, 2022, OpenAI unveiled a novel product, initially described as “ChatGPT,” a model designed for conversational interaction.

The subsequent impact of ChatGPT on the business and technology sectors has been transformative, achieving widespread popularity. It currently maintains the top position in Apple’s free app rankings.

Furthermore, ChatGPT has acted as a significant driver for the proliferation of generative AI technologies.

OpenAI's Growing Influence

Author Karen Hao, of “Empire of AI,” recently suggested in an interview with TechCrunch that OpenAI has attained a level of power exceeding that of most nation-states.

Hao posits that OpenAI is actively reshaping global geopolitics and fundamentally altering our lives.

The potential for further substantial changes remains high.

A World Defined by Precarity

Charlie Warzel, writing for The Atlantic, asserts that we now inhabit “the world ChatGPT built.”

This world is characterized by a distinct sense of instability and a constant anticipation of unforeseen consequences.

Younger generations, preparing to enter the workforce, experience this uncertainty acutely, facing cautions about the lack of predictable career paths.

Even established professionals are being informed that the future may be unrecognizable, potentially rendering their current skills obsolete.

Optimism and the Potential for a Bubble

While some maintain a more positive outlook regarding an AI-driven future, many are poised to benefit financially from its development.

However, Warzel suggests that both proponents and investors are in a state of waiting – awaiting the realization of their investments, but also acknowledging that generative AI is perpetually evolving and never fully finalized.

ChatGPT's Effect on the Stock Market

Bloomberg conducted an analysis focusing on ChatGPT’s influence on the stock market.

Nvidia has emerged as the most significant beneficiary, experiencing a 979% increase in its stock value since the chatbot’s launch.

The enthusiasm surrounding AI has also positively impacted other major technology companies.

Market Concentration

The seven most valuable companies within the S&P 500 – Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta, and Broadcom – are all technology-focused.

Collectively, their growth accounts for nearly half of the S&P 500’s 64% increase since ChatGPT’s introduction.

This has resulted in a more concentrated market, with these seven companies now representing 35% of the S&P 500’s weighting, compared to approximately 20% three years prior.

Acknowledging the Risks

With the exception of Nvidia CEO Jensen Huang, many AI leaders are increasingly acknowledging the possibility of a market bubble – or “mania.”

OpenAI CEO Sam Altman stated in August, during a discussion with journalists, that “someone is going to lose a phenomenal amount of money in AI.”

Bret Taylor, CEO of Sierra and chair of the OpenAI board, concurred, describing the current situation as a “bubble” comparable to the dot-com boom of the late 1990s.

Taylor predicted that while some companies may fail, “AI will transform the economy, and I think it will, like the internet, create huge amounts of economic value in the future.”

The validity of this optimism may become clear within the next three years, or even sooner.