Walmart (WMT) stock rose over 3% on Tuesday afternoon after the company became the latest to announce a partnership with OpenAI (OPAI.PVT).
Walmart said that customers will be able to shop and purchase items directly on the ChatGPT platform using Instant Checkout. Additionally, on the flagship Walmart website and Sam’s Club website, customers will be able to interact with ChatGPT conversationally in the search bar.
“For many years now, eCommerce shopping experiences have consisted of a search bar and a long list of item responses. That is about to change,” Walmart CEO Doug McMillon stated in a press release, “There is a native AI experience coming that is multi-media, personalized and contextual.”
Walmart did not disclose the dollar amount of the deal, which fits into the company’s broader AI strategy.
McMillon said the company is moving quickly toward a “more enjoyable and convenient future” through its AI shopping assistant, Sparky, and partnerships like this one.
The company has also been expanding e-commerce and delivery. Walmart US e-commerce profitability increased again in the second quarter after turning profitable in Q1.
In the release, OpenAI co-founder and CEO Sam Altman said the AI startup was “excited” to partner with Walmart to “make everyday purchases a little simpler.”
Recently, OpenAI has been on a dealmaking spree. The startup has partnered with AI infrastructure providers and chipmakers, including AMD (AMD) and Broadcom (AVGO). Nvidia (NVDA) also shared plans to invest up to $100 billion in OpenAI in late September.
But OpenAI’s partnerships haven’t been limited to chipmakers. The company has also been piloting app and e-commerce integrations with companies such as Etsy (ETSY) and Shopify (SHOP).
OpenAI’s expanding web of partnerships drives AI market
A list of the prominent players OpenAI has struck deals with.
☁️ Infrastructure and chip partners: Nvidia, AMD, Microsoft, Oracle, Google, Amazon, CoreWeave, Broadcom, Samsung, Broadcom
📱 Apps integration: Booking.com, Canva, Coursera, Figma, Expedia, Spotify, Zillow
🗞️ Media licensing: Financial Times, The Atlantic, Vox Media, News Corp
🪀 Other: Salesforce, Mattel, DoorDash, Instacart, Etsy, Walmart
In a note to clients, UBS analyst Michael Lasser wrote that the initiative could “create significant opportunities” given its growing weekly user base. As of September, ChatGPT had 700 million weekly active users.
Lasser wrote that, once again, Walmart is “early in adopting new technologies to better reflect evolving consumer trends.”
