Since the close of trading last week, shares of Figma (FIG -4.42%) have surged nearly 31% higher, as of the close of trading Thursday. The move largely came after OpenAI's CEO Sam Altman conducted a demonstration showing how users can access Figma within the artificial intelligence (AI) chatbot ChatGPT.
Working with SaaS
Given AI's growing capabilities, many have wondered whether conversational chatbots like ChatGPT, which now has over 800 million users, could simply replace many services offered by software-as-a-service (SaaS) applications. But during a demonstration earlier this week, Altman showed how ChatGPT is partnering with many third-party apps and vendors so users can access them without leaving the conversational chatbot.
Image source: Getty Images.
"When someone's using ChatGPT, you'll be able to find an app by asking for it by name," Altman reportedly said during the event, according to CNBC. "For example, you could sketch out a product flow for ChatGPT and then say, 'Figma, turn this sketch into a workable diagram.' The Figma app will take over, respond, and complete the action."
Additionally, in a blog post, Luke Zhang, a product manager at Figma, said ChatGPT would be able to suggest and create an AI FigJam, which is a collaborative online whiteboard, from a conversation. Users will also be able to upload a range of files to influence the finished product.
Altman also said that third-party software vendors and partners will eventually be able to generate revenue by integrating with OpenAI.
Figma still has an elevated valuation
Figma already had lots of AI potential, and the integration with ChatGPT is certainly intriguing, although it's still unclear how material to revenue it will be. However, the company went public earlier this at a huge valuation and now trades at 229 times forward earnings and over 32 times forward sales. For this reason, I am avoiding the stock for now.
