None of the information in our articles is intended as investment advice, as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any security, company, or fund. At least you know that after the IPO, there will be a public market for your shares. You may not be able to take immediate advantage of that market, though.
Markets
The remainder is held by the OpenAI Foundation and various venture firms, accounting for 51%. This structure allows OpenAI to seek additional capital for expansion while regulating investor returns and facilitating potential wealth redistribution if successful general artificial intelligence (AGI) is developed. Top investors include technology investment firm Thrive Capital, venture capital firm Andreessen Horowitz and revolutionary technology investment firm Founders Fund. As for how Microsoft could benefit from its investment in OpenAI, OpenAI officially licensed its technologies to Microsoft in 2020 in a then-exclusive partnership.
Invest After the IPO
- To put this in perspective, Instagram took approximately 2.5 months to reach the same milestone, while Netflix took around 3.5 years.
- OpenAI began with an initial seed funding of $50 million from Elon Musk, who was a co-founder of the company before leaving in 2018.
- NVIDIA has been the front-runner AI stock, with a one-year performance of over 234% as of February 20, 2024.
- But, OpenAI works with some of the world’s biggest companies, like Microsoft.
Reuters reports that “the training of DeepSeek-V3 required less than $6 million worth of computing power from Nvidia H800 chips.” Before investing in OpenAI, take time to understand the risks related to this privately held company. However, determining OpenAI’s exact valuation can be challenging since it is a private company and does not publicly disclose its financial reports. Nevertheless, OpenAI’s success with ChatGPT and its other AI technologies is expected to positively affect its financial performance. You can purchase individual shares of MSFT in a brokerage account or an IRA. Many ETFs and mutual funds also hold shares of this tech behemoth which has injected billions of dollars into this AI startup.
Step 1: Research the market and choose a company to invest in
However, in 2019, a new round of investments valued the company at around 20 billion dollars, representing a significant increase in value in just four years. In the 2019 investment round, Microsoft invested 1 billion dollars in OpenAI, making it a significant shareholder. Fast forward to today, OpenAI is currently valued at around 29 billion dollars. Based on this information, it is clear that the early investors in OpenAI have likely seen a substantial return on their investment.
Fees for Investing in AI Stocks
In what tech gurus like Marc Andreesen call AI’s Sputnik moment, DeepSeek unseated ChatGPT as the most downloaded free app in the Apple App Store, at reportedly a fraction of the cost. For reference, in 1957 the Soviets launched Sputnik, the earth’s first artificial satellite, beating out the United States and sparking a Cold War space exploration race between the two nations. Cybersecurity risks are also a concern for ChatGPT apis and api design with python users, and recent events along these lines add validity to Musk’s warning.
Future Possibilities
OpenAI has swept the globe, with its ChatGPT chatbot going viral and reaching over 180.5 million users by 2024. While direct investment in OpenAI isn’t possible – at least, not right now, there are several ways to invest indirectly. Enter your email address to see which stocks MarketBeat analysts think might become the next trillion dollar tech company. How can you invest in OpenAI if the company doesn’t yet have a stock listed for sale?
- Industries such as manufacturing, healthcare, finance, marketing, education, and resources are actively developing AI-enabled solutions.
- The platform witnessed a record-breaking growth in traffic from April to June 2023, with the website generating 1.6 billion visits in June alone.
- Global consulting firm McKinsey & Company predicts generative AI could have an economic impact of as much as $4.4 trillion annually.
- He has worked with hedge funds, cryptocurrency exchanges, and AI research firms.
When will OpenAI IPO?
With his bid, Musk has signaled there’s at least one group of investors willing to pay a sizable premium for OpenAI’s nonprofit wing. As the Stargate framework enables more AI systems to communicate and share capabilities, the complexity of managing these interactions within regulated, security-conscious environments will increase dramatically. Palantir’s proven ability to build mission-critical systems that maintain governance while enabling powerful analytics creates a natural entry point for the company to become a key implementation partner for Stargate deployments. Last month, a Musk-led investor group offered to buy control of OpenAI for $97.4 billion.
Elon Musk co-founded OpenAI and initially contributed $50 million, but he exited in 2018 after selling his share to Microsoft. Allegedly, Musk had pledged $1 billion in support before withdrawing due to disagreements over OpenAI’s pace of progress. Since then, he has criticized OpenAI multiple times for not prioritizing safe AI development enough. Recently, he filed a lawsuit, claiming CEO Sam Altman breached their contract by prioritizing profits over the company’s original mission. You might also consider buying stocks of companies that are utilizing AI.
However, the industry is also highly volatile, so be careful to do enough research before investing. Despite being at the top of the AI game, ChatGPT saw a drop in downloads ethereum mining profitability 2021 of almost 10% in June 2023. AI technology is slowly permeating our lives, finding its way to our smartphones, computers, and cars, as well as automatizing many of the routine tasks in industries such as software development and chip manufacturing. While Elon Musk was a co-founder and originally invested $50 million to start the lab, he sold his stake to Microsoft and left the company in 2018. In October 2024, Thrive Capital, Khosla Ventures, Microsoft, and Nvidia invested $6.6 billion (via convertible debt) at a valuation of $157 billion.
However, OpenAI is not a public company, so buying its stock directly is not feasible. Yet, investors can still gain exposure to the company by investing in stocks and ETFs linked to OpenAI. Understanding the difference between privately held and publicly traded companies is crucial to grasp why purchasing OpenAI shares isn’t possible. Artificial intelligence is only a small part of the overall tech market, with OpenAI representing only a small portion of the AI industry. Consider researching and investing in other top-rated tech-oriented stocks to understand the AI market how much does it cost to start bitcoin trading better. Researching and investing in companies that support the booming tech industry can help you stay current with market news, learning more about public companies aiming towards objectives like OpenAI.
Artificial intelligence is rapidly transforming industries throughout the global economy, accelerating innovation. The Stargate AI Project is one of the most ambitious technological initiatives, promising to revolutionize how AI systems communicate, share resources and scale across different platforms and applications. For investors seeking to capitalize on this leap forward, identifying companies positioned to benefit from Stargate’s implementation could provide significant growth opportunities in the coming years. This means that before the company goes public, only accredited and institutional investors can invest in it. For investors interested in exposure to OpenAI, venture funds offer an indirect investment opportunity.
These public investment choices provide an entry point into the growing field of AI. They are available through regulated brokers globally, allowing for a diversified approach to investing in an industry expected to see rapid expansion. Each week our editorial team keeps you up with the latest financial news, shares reading recommendations, and provides useful tips on how to make, save and grow your money. The views about companies, their securities and funds expressed in this article reflect the personal opinions of the individual writer. They do not represent the opinions of Vertigo Studio SA (publishers of FinMasters) on whether to buy, sell or hold shares of any particular stock. These marketplaces often impose investor qualifications, and there is no guarantee or assurance that they will have available shares in any given pre-IPO company.