The three-year anniversary of ChatGPT's release is on Sunday. There has been much more than three years of upheaval for investors and the business community.
The economy has become increasingly K-shaped, with the gulf expanding between the financial haves and have-nots in both the business and consumer spheres.
The way the markets and economy have changed is impressive in and of itself. But against the backdrop of the markets from which this artificial intelligence boom sprang, the return is even more astounding. In short, ChatGPT provided a catalyst to improve one of the worst market conditions investors had been facing since the financial crisis, in addition to igniting the largest technological boom in a generation.The S&P 500 fell 25% from its record high on the first trading day of the year on October 12, 2022, marking the lowest point of the post-COVID sell-off.
The S&P 500 had recovered over 13% from its lows by the time OpenAI published ChatGPT on November 30, 2022, but it wouldn't set a new record until January 2024.
The Federal Reserve was aggressively hiking rates in the fall of 2022 in an attempt to finally catch up with the skyrocketing inflation. The storm in the market centered on tech companies, which had been the market's darlings following the pandemic.
Shares of potential AI winners like Nvidia (NVDA), Meta (META), and Palantir (PLTR) were down over 70% at their year-to-date lows in 2022. In 2022, the stock of Apple (AAPL) dropped by over 30%.
Shares of potential AI winners like Nvidia (NVDA), Meta (META), and Palantir (PLTR) were down over 70% at their year-to-date lows in 2022. In 2022, the stock of Apple (AAPL) dropped by over 30%.
The shares of Alphabet (GOOG, GOOGL) fell by almost 40%. Amazon (AMZN) shares were reduced in half. And in light of this, the uncertainty that has seemed to accompany this bull run becomes easier to understand. OpenAI's statement launching ChatGPT in November 2022 was six sentences long.
In its most recent fundraiser, OpenAI was valued at $14 billion eighteen months before to the introduction of ChatGPT; currently, the privately held corporation is valued at $500 billion. The value of less than 20 enterprises worldwide is higher.
"We’ve trained a model called ChatGPT which interacts in a conversational way," the release from OpenAI stated. "ChatGPT can respond to follow-up inquiries, acknowledge its errors, refute false assumptions, and deny unsuitable requests thanks to the dialogue style. We are thrilled to present ChatGPT in order to gather user input and discover its advantages and disadvantages.
"We’ve trained a model called ChatGPT which interacts in a conversational way," the release from OpenAI stated. "ChatGPT can respond to follow-up inquiries, acknowledge its errors, refute false assumptions, and deny unsuitable requests thanks to the dialogue style. We are thrilled to present ChatGPT in order to gather user input and discover its advantages and disadvantages.
Investors, consumers, and the general public were not made aware of the revolution the corporation was going to initiate by this product introduction.
A market and economy mired in extensive unemployment and a 40-year high in inflation were to be saved by a straightforward product announcement that you could read in ten seconds or less? Not likely.
However, that's how it turned out. The modest beginnings of the AI boom will continue to influence how we currently perceive its development as it approaches its fourth year.
