Elon Musk is reportedly planning a rival to ChatGPT, the OpenAI chatbot that has taken technology by storm in 2023.
The Tesla (NASDAQ:TSLA) CEO is said to be recruiting researchers for a lab that will compete with OpenAI, which developed ChatGPT.
The recent rise in Tesla, up 68% in just two months, has vaulted Musk back to near the top of the Forbes 400, with a fortune estimated at $197 billion.
The AI Skeptic Comes Around
The launch of ChatGPT in Microsoft (NASDAQ:MSFT) search engine Bing kicked the global gold rush in chatbot technology into overdrive. Chatbots use large language models to deliver detailed, written answers to freeform questions. The technology can also be used on sound and visual files.
Musk was on the original board of OpenAI. But he recently expressed “existential angst” about the technology. In 2018 he called AI “far more dangerous than nukes” and highlighted the danger in tweets. He has also called for strict regulation of the technology.
Now that is in the past. Musk has recruited Igor Babuschkin, a former employee of Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) AI unit, to form a research lab and hire other researchers.
Musk will start this race from behind. Andrej Karpathy, formerly head of AI for Tesla, left the company last March and recently joined OpenAI.
Alluding to Musk’s politics, The Information says he is fighting “Woke AI.” Musk has equated the word “woke” with lying. But Chinese companies building chatbots face strict censorship from an intolerant government.
In addition to its talent for manipulating truth, there is fear that chatbots will also eliminate jobs. ChatGPT creator Sam Altman rejects this concern. But the Amazon (NASDAQ:AMZN) Kindle store has been flooded with books written with OpenAI since the tool’s November launch.
What Happens Next With AI Stocks?
The Gartner (NYSE:IT) “hype cycle” defines how technologies like ChatGPT evolve, much like Kubler-Ross’ five stages of grief.
The recent “innovation trigger” is leading to “inflated expectations,” to be followed by disillusionment and enlightenment. There will be a bubble here, but that bubble will also burst before chatbots mature. And AI stocks will likely follow the same pattern.
On the date of publication, Dana Blankenhorn held long positions in MSFT, GOOGL and AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.