Billionaire investor Warren Buffett is impressed by OpenAI’s ChatGPT, the know-it-all chatbot that has taken the world by storm – but confesses it’s something he doesn’t quite understand yet.
In an interview with CNBC’s Becky Quick on “Squawk Box” last week, Buffett said he was blown away by a demonstration that was made by his friend, Microsoft founder Bill Gates.
“I think it’s something I don’t understand at all, but Bill did come by about four or five months ago at least,” Buffett said.
“[He said] ‘I’m going to show you the latest thing and what can be done with that.’ I actually said take the song ‘My Way’ and write it in Spanish.”
The power of ChatGPT
Within seconds, Buffett was amazed that the bot had successfully translated the lyrics of the song into Spanish and had added rhymes and other poetic devices.
Buffett, who has traditionally shied away from tech stocks, said he saw enormous potential in the technology, not just in the world of music but in many other fields as well.
San Francisco-based startup OpenAI created ChatGPT, the AI chatbot Microsoft is investing billions in. When prompted, it generates responses that resemble human conversation.
Warren Buffett on ChatGPT and AI:
“I don’t really understand it, I think it’s incredible technological advance in turns of showing what we can do but I don’t know if we know what happens… I don’t want to change the world too many times without having some idea of the… pic.twitter.com/jPiqqc6335
— I Meme Therefore I Am 🇺🇸 (@ImMeme0) April 13, 2023
Buffett’s fascination with ChatGPT extended beyond his personal interest in the technology itself. In his view, the power of ChatGPT lay in its ability to facilitate communication and understanding between people from different cultures and backgrounds.
He believes the technology could help bridge the gaps that often exist between people who come from different parts of the world, speak different languages, and have different customs and beliefs.
Buffett recounted a conversation with Gates where they discussed the AI’s limitations: its inability to tell jokes.
“It just doesn’t know how to tell jokes, but it can tell you that it’s read every book, every legal opinion. I mean, the amount of time it could save you, if you were doing all kinds of things, is unbelievable,” Buffett said.
Buffett says bitcoin ‘lacks intrinsic value’
Despite the positives, Buffett acknowledged concerns about potential ChatGPT misuse. For instance, students have been using the tool to produce complete essays, and hackers have been experimenting with it to write harmful code.
For over thirty years, Gates and Buffett have maintained a close friendship. They co-established The Giving Pledge, an initiative that encourages the world’s wealthiest individuals to donate at least half of their wealth to charitable causes.
Despite his enthusiasm for ChatGPT, Buffet’s views on bitcoin remained unchanged, as he remains skeptical about the cryptocurrency. He believes that bitcoin and other digital assets have no intrinsic value, and that their prices are driven purely by speculation.
The billionaire has previously called bitcoin a ‘mirage,’ and warned investors to stay away from it. But he also admits the world is changing rapidly, and that he had to keep an open mind about new technology and its potential.