Microsoft-backed (MSFT) AI firm OpenAI just introduced a new feature called Instant Checkout, which lets users buy products directly through ChatGPT. For now, the tool supports single-item purchases from U.S.-based Etsy (ETSY) sellers and is available to U.S. users on the Free, Plus, and Pro ChatGPT plans. OpenAI also said that more than one million Shopify (SHOP) merchants, including well-known brands like Skims and Glossier, will be added soon.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The feature could become a new way for OpenAI to earn money, as the company will take a fee from each transaction made through ChatGPT. While it didn’t reveal the exact fee, OpenAI confirmed that users won’t see any extra charges since the fees are based on private contracts with Etsy and Shopify. Moreover, Michelle Fradin, who leads ChatGPT’s commerce features, told CNBC that the goal is to make ChatGPT more useful by helping users complete real-world tasks, such as shopping, instead of just providing information.
Interestingly, Instant Checkout uses OpenAI’s Agentic Commerce Protocol, which was built with help from Stripe and handles ChatGPT subscription payments. This means that if you have already entered payment info into ChatGPT, you won’t need to do it again to shop. OpenAI also plans to expand the feature by adding support for multi-item carts and making it available in more regions. In addition, Fradin said that the protocol will be open-sourced so developers and merchants can build new uses for it.
Is MSFT Stock a Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 33 Buys and one Hold assigned in the last three months. Furthermore, the average MSFT price target of $628.36 per share implies 22% upside potential.
