3 Unconventional Artificial Intelligence Stocks for Your Watchlist 

It was barely a month and a half ago when a friend asked me if I had ever used ChatGPT. I had vaguely heard of it.

I had no clue it will become viral. You would perhaps be considered a neanderthal if you haven't heard of it yet.

From writing a leave of absence in flamboyant Shashi Tharoor style (which the man himself could not resist commenting on), to passing an MBA exam assessed by a Wharton School professor, ChatGPT is all over the news and social media.

I could not contain my curiosity and decided to try ChatGPT.

I asked it to write a fiction piece around four keywords.

And I must say I'm quite impressed. It did write better in a few seconds than I could have.

Guess who is pressing the panic button on ChatGPT's increasing popularity?

Well, it is none other than Mr Pichai at Google. You know it's not just a fad, but a revolution in the making when the tech lord declares code red.

It may not be long before conscientious authors start crediting ChatGPT in their acknowledgment section of the novel, critics use it to publish reviews and breaking news is served straight out of this software.

Why does this development concern you as an investor?

I'm interested in development and disruptions in the tech space, and the investment opportunities - winners and losers from the same.

This could be a game changing investment in the search market.

ChatGPT is developed and owned by OpenAI. Its notable investors include Elon Musk, Sam Altman, a bunch of researchers and computer scientists. The listed companies that have invested in it include Microsoft's investment in 2019 and 2021, which is now planning to raise stake further to 49% , planning to spend US$10 bn.

Nvidia could be a potential beneficiary as ChatGPT uses the former's GPUs (graphic processing units) to train and run its algorithm. Nvidia has announced a partnership with OpenAI to develop artificial intelligence technologies and deep learning models.

Post ChatGPT, OpenAI is in talks for a tender offer that could value it at US$29 bn, making it one of the most valued startups.

US$29 bn dollar is Rs 2.3 trillion, higher than the marketcap of Sensex listed companies such as Nestle, Titan, and Wipro, and more than three fourths of the marketcap of companies like HCL Technologies.

Wondering if India listed companies would benefit from this valuation directly, or are invested in ChatGPT? You would be glad to know that Infosys was an early backer. But from what I have gathered, it was through a donation, that does not translate into a stake.

Nonetheless, I'm interested in the future potential of AI companies listed in India that are working on language models similar to ChatGPT.

It's a bit speculative at present, nonetheless, it makes sense to keep track of these developments. Who knows we might have our own Indian version of a similar model soon, leading to huge money making opportunities for these companies.

So let's dive in.

Companies that are working on developing AI based solutions for NLP i.e. Natural Language Processing and Machine Learning include TCS, Wipro, Infosys, Persistent Systems. Now these are obvious names in this industry, expected to be working on AI.

Let's take a look at the lesser known candidates in this space.

The first is Haptik, that offers AI or artificial intelligence powered conversation platforms to big enterprises. The company has been working on a solution called Interakt. For less than Rs 1,000 a month, it takes care of customer queries through a virtual assistant, thus making life of small business owners easy.

With this, users can track their business metrics on WhatsApp, google messages, and Instagram. It has 5000 paying users. The addressable opportunity is 1 bn users.

87% stake in this company is owned by Reliance Jio in a deal valued at Rs 7 bn in 2019, and the remaining by its founders. The company aims to get listed.

The second is Bobble AI.

It offers keyboards which let users type in Indian languages. It claims to be world's first conversation media platform that allows localisation with over 100 languages and personalisation of content, including a facial recognition feature which is used to convert selfies into GIFs and stickers.

Its flagship product is Bobble Indic keyboard that allows real time content creation and offers AI based contextual recommendations, speech to text feature, among others.

The firm Affle India has 26.24% stake in the same. The company had plans to divest partially but for now is maintaining the stake.

The third listed and lesser known company investing in Artificial Intelligence and Machine Learning technology, specialising in Natural Language Processing and Data Analytics is Xelpmoc.

It is invested in Catalyst Inc, a healthcare technology platform that engages with cutting-edge data science techniques such as Machine Learning, Natural Language Processing, Predictive Analytics, and AI models, to create a unified dataset of drugs.

Another startup it has invested in is Rype Fintech. Rype Fintech with its Natural Language Processing engine enables businesses to manage their finances by providing real-time actionable insights.

Now, as ChatGPT continues to generate more interested in NLP based business opportunities, these are some stocks you could keep on your watchlist. Do note that inclusion of companies in this list does not reflect any view on the stock. It is just an attempt to keep you abreast with the lesser talked about developments in the tech space.

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