How AI will reshape our lives is clouded with uncertainty. Researchers are debating what it means to achieve artificial general intelligence, or AGI, or whether the neural-network systems that drive chatbots like ChatGPT can lead us to that big prize. But smart investors should avoid trying to predict future breakthroughs of a technology that is still at an evolutionary stage.
Rather than participating in OpenAI Inc.’s expensive secondary share sales, they can get exposure to the AI theme using a time-tested approach. The supply chain is long, complex and prone to bottlenecks. At each chokepoint, there are a few economic moats — to use Warren Buffett’s phrase — that deliver outsized earnings a lot faster and surer than ambitious, large language-model developers.
Smart AI Investing Isn’t About Chasing the Big One
