BuzzFeed Smashes Records for Trading Volume on OpenAI Frenzy
Frenzy #Frenzy
(Bloomberg) — Companies tied to artificial intelligence services recorded some of their highest trading volumes on record this month, amid a frenzy of interest in the ChatGPT tool, which generates conversation-style interactions.
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BuzzFeed Inc., C3.ai Inc., SoundHound AI Inc., and BigBear.ai Holdings Inc. are among the stocks that have all seen massive jumps in volume, along with dizzying swings in their share prices. BigBear.ai soared nearly 65% on Monday, with trading volume that was more than 2,100% of its daily volume over the past three months.
Last week, Microsoft Corp. said it was investing $10 billion in OpenAI, the maker of ChatGPT, and BuzzFeed announced plans to use OpenAI to help with content creation. Over the weekend, Bloomberg News reported that the China-based search company Baidu Inc. is planning to roll out an artificial intelligence chatbot service similar to ChatGPT.
The developments have made AI-related stocks hugely popular with investors. BuzzFeed shares soared more than 300% last week, and trading volume topped 438 million shares. Volume is above 485 million for the month, compared with its monthly average of less than 25 million shares.
Among other stocks, C3.ai has seen more than 72 million shares trade hands this month, the most since June, while voice AI software company SoundHound AI Inc. has seen about 64.5 million shares change hands, almost three times its monthly average.
On Monday, BuzzFeed fell 29%, while SoundHound climbed 14% and C3.ai declined 8.3%.
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(Updates to market close, adds BigBear.ai trading.)
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