How to Buy OpenAI Stocks
Understand why OpenAI isn't publicly traded and find out how you can still invest in the AI market through top companies.
Summary: OpenAI remains a private company, making its stocks unavailable for public purchase. Investors seeking exposure to Sam Altman's AI organization can consider investing in Microsoft, which owns a 49% stake in OpenAI, or explore other AI-focused public stocks like NVIDIA.
This strategy provides indirect involvement in the AI sector's expansion while OpenAI continues to operate privately.
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Can I Buy OpenAI Stocks?
Currently, OpenAI is privately owned and therefore, its stocks are not available for public purchase. It was founded by well-regarded builders across the technology sector in Silicon Valley including Sam Altman, Ilya Sutskever, and Greg Brockman and is recognized for its innovations in artificial intelligence, including products like ChatGPT, Sora and Dalle-E.
The majority of OpenAI's funding comes from venture capitalists and corporate contributions, including prominent investors like Microsoft, Andreessen Horowitz, and Sequoia Capital. Following a $300 million investment round, back when the company was valued at $27 billion. A practical way to gain indirect exposure to OpenAI is by purchasing Microsoft stock, as Microsoft owns a 49% stake in the company.
Will OpenAI Go Public?
There is no confirmed plan for an IPO yet, but recent analysis indicates OpenAI's valuation might range between $80 to $90 billion, a notable increase from previous estimates. This rise follows a significant $13 billion investment from Microsoft.
As a private entity, OpenAI's escalating valuation and robust revenue generation have increased investor excitement about the possibility of a public offering. With its groundbreaking work in generative AI and numerous industry partnerships, OpenAI remains a significant company in the AI industry.
Who Owns OpenAI?
OpenAI operates under a capped-for-profit model, with its equity distributed among its founders, employees, major investors such as Microsoft, Sequoia Capital, and others. Recently, Microsoft has increased its stake, investing $13 billion to enhance ChatGPT and now owns 49% of OpenAI.
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.
Best AI Stock Alternatives to OpenAI
If you're interested in artificial intelligence but can't buy OpenAI shares because it remains private, consider these publicly traded alternatives involved in AI:
- NVIDIA (NVDA): As the main GPU supplier for significant OpenAI projects like ChatGPT and DALL-E, NVIDIA plays a crucial role in the AI sector. Their technology powers complex language models, solidifying NVIDIA’s position in AI research and implementation.
- Microsoft (MSFT): Besides being a major investor in OpenAI, Microsoft boasts a comprehensive AI portfolio, including AI-enhanced cloud services and ethical AI solutions. This involvement cements Microsoft’s strong presence in the dynamic AI market.
- ARK Autonomous Technology & Robotics ETF (ARKQ): If you're looking for varied investment in leading AI and robotics firms, ARKQ ETF is an excellent choice. It holds shares in innovators like Tesla and UiPath, who are pushing boundaries in AI and automation technology.
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.
Bottom Line
In summary, while OpenAI itself remains a private entity, potential investors looking to profit from its advancements in artificial intelligence can consider buying shares of related public companies like Microsoft, which holds a significant stake in OpenAI. As the field continues to evolve, options such as NVIDIA and ARKQ ETF present viable alternatives for investing in the broader AI market.
Keep in mind, the situation may change if OpenAI decides to go public, given its increasing valuation and strong market interest.