This demonstrates confidence in the company’s potential for generating revenue and profitability. 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.
For those with the resources and accreditation, private market transactions or VC funds offer a more direct path, albeit with higher risks and barriers. Through VC or private equity firms, you may be able to invest in OpenAI through equity stakes or shares in these firms as part of a larger tech portfolio. As of August 2023, OpenAI is a privately held company, meaning that there is no OpenAI ticker or stock symbol you can search for to invest through. The company’s hybrid structure, composed of both nonprofit and profit-oriented companies, has contributed to founders’ hesitancy to offer shares to retail investors. OpenAI is a private company, and they may decide to raise capital through late-stage startup investing platforms.
Hiive works by connecting current shareholders (typically employees, venture capital firms, or angel investors) to accredited investors. best indicators for cryptocurrency cfds technical analysis After a buyer and seller agree on a price, Hiive facilitates the transaction. For now, keeping an eye on news about the company’s IPO plans is the best way to prepare for potential future opportunities. Monitoring regulatory filings or announcements by OpenAI about plans to go public would give investors the chance to act early if the company does decide to list on the stock market.
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At a more immediate level, concerns over copyright and plagiarism issues persist, as do worries about AI replacing workers. Longer-term, the company is attempting to create general artificial intelligence which mimics human-like intelligence — creating all sorts of philosophical issues. For context, an IPO generally provides liquidity at the expense of corporate freedom. However, new CFO Sarah Friar previously led publicly listed Nextdoor and Block and may have been hired at least in part to help navigate the complexities of being listed. At the Madrona IA Summit in Seattle in October 2024, OpenAI backer Brad Gerstner of Altimeter Capital argued it is ‘total nonsense’ that companies need $1 billion in revenue before launching an IPO.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. While investors beginner’s guide to buying and selling cryptocurrency wait for the OpenAI IPO, there are plenty of ways to gain indirect exposure to the company.
It also teamed up with OpenAI to develop new AI supercomputing technologies for its Azure cloud platform. OpenAI moved its services to the Azure platform as part of the agreement. Microsoft also became OpenAI’s preferred partner for marketing new AI technologies. However, you can still invest in it indirectly by buying shares in companies that are in collaboration with it. TradingBrokers.com is for informational purposes only and not intended for distribution or use by any person where it would be contrary to local law or regulation.
How to invest in OpenAI
We do not provide financial advice, offer or make solicitation of any investments. Trading and investing in financial instruments comes with a high degree of risk and you can lose money. You should only engage in any such activity only if you are fully aware of the relevant risks. Finally, another way to invest in OpenAI indirectly is by purchasing shares of other technology startups or companies that are working on AI innovations similar to those OpenAI is pursuing. Many emerging firms are working on breakthrough technologies in natural language processing (NLP), machine learning, computer vision, and other areas that overlap with OpenAI’s research. Due to its hybrid model, OpenAI’s leadership has stated that the company has no plans to pursue an IPO.
He has five years of experience as a business writer and has written for companies like SoFi, StockGPT, Benzinga, and more. Founded in 2015 by Altman, Elon Musk, and others, OpenAI launched a for-profit subsidiary in 2019, allowing outside investment for a share of future profits. The agreement is vital for OpenAI’s restructuring and could influence its role in developing large language models, the backbone of technologies like ChatGPT.
- More recently, in December 2024, OpenAI introduced ChatGPT Pro subscriptions targeting engineers and academics.
- If you’re an early adopter of technology or enjoy investing in tomorrow’s trends, you’ve likely explored artificial intelligence (AI) stocks.
- If they decide to become public via an IPO, we’ll find out the ticker symbol at that time.
- In this article, we’ll explain all you need to know about investing in OpenAI.
This means that before the company goes public, only accredited and institutional investors can invest in how does bitcoin mining work it. For investors interested in exposure to OpenAI, venture funds offer an indirect investment opportunity. Although OpenAI’s unique status prevents its shares from being included in ETFs, investors can still invest in related AI projects if they are not comfortable selecting individual stocks. Consider top technology-focused exchange-traded funds (ETFs) that provide exposure to generative technologies like OpenAI. While investing directly in OpenAI might not be feasible at present, you can still explore artificial intelligence investments through other publicly traded avenues.
As part of the negotiations, Microsoft is reportedly willing to give up some of its equity stake, which will, in turn, warrant access to OpenAI’s new and sophisticated AI models beyond the expected 2030 cutoff. Additionally, Microsoft and OpenAI are in deliberations to revise the terms of a wider contract, which was drafted when the software first invested $1 billion in the ChatGPT maker back in 2019. If OpenAI maintained its previous business model and structure, market analysts and experts predicted it would open the AI firm to outsider interference and hostile takeovers. Industry insiders warn that failure to establish a public benefit corporation could hinder OpenAI’s fundraising, IPO prospects, and ability to compete with Big Tech rivals.
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- You can’t buy OpenAI stock because it hasn’t listed its shares on any stock exchange at this point.
- Throughout 2023, Microsoft strategically integrated OpenAI’s technologies into its applications.
- He is the darling of both the starch-collared Davos set and Silicon Valley’s dishevelled techno-Utopians.
For 2025, OpenAI is focusing on developing agentic AI capabilities into its ChatGPT platform. Agentic AI, a part of the evolution towards AGI, involves AI systems and models that can act autonomously and complete tasks without much human guidance. Early in January, OpenAI announced the rollout of new task features for ChatGPT Pro, Plus and Teams users. While still in the beta stage, these features allow users to schedule future tasks to be completed by ChatGPT, such as a weekly news brief or reminders about important meetings.
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Infosys CEO Salil Parekh said at the June meeting that the company has 50 active client projects using generative AI. Altman said, “When we develop superintelligence, we are likely to make some decisions that most investors would look at very strangely.” Microsoft has firmly established itself as a leader in the AI sector, thanks to its multi-billion investments in ChatGPT. This enthusiasm in regard to AI helped bolster Microsoft’s reputation as a technology conglomerate with a strong presence in all emerging and growing sectors. The lab has raised a total of $61.9 billion from 34 investors over 10 funding rounds. While OpenAI isn’t listed publicly as one of the fund’s holdings, it does show as a holding once you register and become an investor in the fund (see the image below from my investor account).
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What’s more, it seems like Microsoft is planning to introduce AI functionalities to other aspects of its OS, such as the task manager. This might bring more users in contact with artificial intelligence, solidifying Microsoft’s position in the industry. As Microsoft is a conglomerate giant with a presence in a number of industries, its optimism in regard to the value of OpenAI and its products alone is enough to attract a lot of potential investors. 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. Most recently, SoftBank, Microsoft, Coatue, Altimeter and Thrive Capital invested $40 billion at a valuation of $300 billion in March 2025.
Additionally, buying Microsoft’s stock opens you up to other risks outside of OpenAI. For example, Microsoft could report declining growth for its Azure cloud line of business, which could hurt its stock price. If you own Microsoft, this would hurt you too – even though it has nothing to do with OpenAI. These are the other factors to be aware of when you plan on buying OpenAI stock through Microsoft. As a private company, OpenAI is not required to disclose its finances on a quarterly basis. But’s it’s worth noting that OpenAI’s capital expenditure is going to be high as its AI models require significant capital to create and develop.