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ChatGPT is “killing” Google’s dominance


Shark Tank star Kevin O’Leary said he’s trying to decide whether to invest in the next round of funding ChatGPT.

“I was very fortunate to be offered some equity buyback, but it’s a $29 billion valuation with almost no revenue… I’m looking at it,” O’Leary said. Yahoo Finance Direct (video above).

OpenAI was last valued at $29 billion in early January funding round, led by a $10 billion slug Security from Microsoft. The tech giant is integrating OpenAI’s ChatGPT AI into its Bing search engine.

“We will probably add a 1% weight to ChatGPT in a portfolio that will keep that weight, although I am eyeing the valuation. I’m suffocating,” O’Leary added.

SHANGHAI, CHINA - FEBRUARY 18, 2023 - A resident uses a mobile phone and computer to access the OpenAI website's ChatGPT in Shanghai, China, February 18, 2023. (Photo credit. Users should read CFOTO/Future Publishing via Getty Images)

SHANGHAI, CHINA – FEBRUARY 18, 2023 – A resident uses a mobile phone and computer to access the OpenAI website’s ChatGPT in Shanghai, China, February 18, 2023. (Photo credit. Users should read CFOTO/Future Publishing via Getty Images)

Two elements of ChatGPT caught the attention of O’Leary, a savvy businessman and investor from Canada. The first are raw downloads of ChatGPT technology, hinting at the potential for significant market share gains over future AI competitors.

ChatGPT surpassed 100 million users in January, according to recent data from Demand Sage.

“Now, tell me it’s [the downloads] didn’t kill Google, and it did,” O’Leary said.

Another key selling point of O’Leary is the financially lucrative recurring revenue associated with ChatGPT. According to O’Leary, some of his employees sign up for the ChatGPT feature for $20 a month.

The feature allows users to access the service when the free version is down – something that happens often.

“They suddenly got revenue because they were so popular,” says O’Leary.

Yusuf Mehdi, Microsoft Corporation Vice President of Modern Life, Search and Devices, speaks during the keynote announcing ChatGPT integration for Bing at Microsoft in Redmond, Washington, on Feb. 2023. - Microsoft's long-suffering Bing search CEO Satya Nadella said the tool will integrate the powerful capabilities of language-based artificial intelligence, while also claiming what he calls a new era for online search.  (Photo by Jason Redmond/AFP) (Photo by JASON REDMOND/AFP via Getty Images)

Yusuf Mehdi, Microsoft Corporation Vice President of Modern Life, Search and Devices, speaks during the keynote announcing ChatGPT integration for Bing at Microsoft in Redmond, Washington, on Feb. year 2023. (Photo courtesy of JASON REDMOND/AFP via Getty Images)

Ultimately, O’Leary believes OpenAI-owned ChatGPT could be a game changer in the search engine market, where Google already dominates. That’s the kind of hype that ignited most AI stocks in February.

Shares of C3.ai jumped 20% in February alone. Microsoft shares are up 5% this month. Alphabet — widely seen as behind Microsoft in its AI war with Bard — saw its shares rise 5% in February.

“While it may initially seem like Google rushed to bring Bard to market with Microsoft’s ChatGPT deal and event overshadowing the company, the race will be long and we expect Google, as well as Apple, Meta and other tech giants will spend billions of dollars on this AI arms race in the years to come,” technology analyst Wedbush Dan Ives said in a note.

Sarah A. Smith is a producer and booker at Yahoo Finance.

For more on the latest AI trends sweeping the market, check out new analysis from Yahoo Finance technology editor Dan Howley.

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