This rise follows a significant $13 billion investment from Microsoft. This strategy provides indirect involvement in the AI sector’s expansion while OpenAI continues to operate privately. Rates, terms, products and services on third-party websites are subject to change without notice. We may be compensated but this should not be seen as an endorsement or recommendation by TradingBrokers.com, nor shall it bias our broker reviews.
Who owns OpenAI?
A practical way to gain indirect exposure to OpenAI is by purchasing Microsoft stock, as Microsoft owns a 49% stake in the company. If you want to invest in OpenAI indirectly, you could consider buying shares of Microsoft (MSFT). By owning Microsoft stock, you gain a stake in the company’s growth and, in turn, its involvement with OpenAI. Microsoft’s growing role in AI development, powered by its partnership with OpenAI, makes it an attractive option for investors looking to capitalize on AI technologies. If OpenAI decides to go public in the future, it will likely issue an Initial Public Offering (IPO). An IPO allows private companies to raise capital by offering their stock to the public for the first time.
For context, OpenAI is now the third most valuable venture capital-backed company in the world, second only to SpaceX and TikTok owner ByteDance. Another AI firm, Elon Musk-founded xAI, raised more than $6 billion on a $24 billion valuation earlier this year, but this involved significantly more dilution than that suffered by OpenAI investors. The remainder is held by the OpenAI Foundation and various venture firms, accounting for 51%.
Trade, Swap & Stake Crypto on Uphold
That $300 billion valuation makes OpenAI one of the most valuable companies in the world. Its value is almost three times that of Starbucks (SBUX-1.78%) ($111 billion) or Lockheed Martin (LMT+1.17%) ($104 billion). OpenAI kicked off the AI boom in late 2022 when it debuted ChatGPT, which the company says now draws 500 million users each week, up from 400 million in February. With all that said, there are a few risks to note if you plan on buying Microsoft as a way of investing in OpenAI stock. While the company has released no official figures, industry analysts estimate that Microsoft’s 2023 investment in OpenAI could amount to around $10 billion.
- The round was led by Japanese investment firm SoftBank (SFTBY+3.09%), which is working with OpenAI on the $500 billion Stargate plan alongside Oracle (ORCL-2.03%) and other partners.
- These funds typically invest in companies before they go public, and they sometimes include shares of high-growth tech firms like OpenAI.
- This means that AI is currently being implemented in products like Bing, Office 365, Azure, GitHub, and even Microsoft’s gaming verticals like xBox and Activision Blizzard.
- It’s important to note that as of now, you do not have the option to buy OpenAI stock.
- Most recently, SoftBank, Microsoft, Coatue, Altimeter and Thrive Capital invested $40 billion at a valuation of $300 billion in March 2025.
- There is a saying that in a gold rush, the people selling shovels make more money than the prospectors.
- A practical way to gain indirect exposure to OpenAI is by purchasing Microsoft stock, as Microsoft owns a 49% stake in the company.
NVIDIA
We did not how to buy on margin receive compensation from any companies whose stock is mentioned in this report. No part of the writer’s compensation was, is, or will be directly or indirectly, related to the specific recommendations or views expressed in this article. If the stock rises straight after the IPO, your entry price will be substantially inflated, but that is by no means guaranteed. If you intend to hold the stock for an extended period, the difference will likely be minimal. You’ll have to tell your broker how many shares you’d like to buy, and there’s no guarantee that you’ll get that number or any allocation at all. Pricing is based on a token system that allows users to pay for the amount of computing power they use.
Maintain a balance of $500 or more in the account for 30 days or more. This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument.
There is no OpenAI stock symbol because it’s a private company that hasn’t yet made its shares available to the public via an initial public offering (IPO). Again, the specifics for most of OpenAI’s finances are not publicly available since the company is private. But, OpenAI works with some of the world’s biggest companies, like Microsoft. So, it’s safe to assume that OpenAI is doing quite well financially. 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.
Google’s parent company has been leveraging AI to enhance most of its operations, including YouTube and its dominant search engine. Alphabet has also ventured into the generative AI space, releasing Bard as a direct competitor to OpenAI’s ChatGPT, showing its rock-solid commitment to AI. Microsoft’s dedication to AI became even more evident with the Windows 11 update. Namely, the new operating system (OS) introduced the Bing AI chatbot, which enables users to easily ask questions directly in its search bar.
Pre-IPO, the company plans to completely separate these two divisions. Perhaps an underrated component of the business model is the strategic partnerships with organisations which align with its mission. OpenAI generates the lion’s share of its revenue from licensing its platform and services to other companies, including integrating their own data and algorithms. OpenAI also licences its technology separately to other companies and is a key beneficiary of US government grants and corporate donations.
Plan your trading
- Currently, OpenAI is privately owned and therefore, its stocks are not available for public purchase.
- Now, Upstart seems to be on the right track to explore new, less volatile growth avenues.
- Since Microsoft can be purchased in any stock brokerage account, buying its stock is the simplest way for investors to gain exposure to OpenAI.
- If you’re convinced that a company has a bright future, it’s still worth a try as long as you have fully considered the risks of pre-IPO investing.
- What makes a concrete analysis of the AI market tricky is the speed at which AI technology is developing, coupled with the multiplicity of opinions various individuals have on the topic.
- This strategy provides indirect involvement in the AI sector’s expansion while OpenAI continues to operate privately.
- If you’re convinced that OpenAI will be a good long-term investment, the simplest way to buy the stock is simply to wait until the IPO concludes.
You will not get the low per-share price that you’d get from a pre-IPO or even IPO investment, but you’ll face substantially less risk. You’ll also get a chance to see how the market responds to the IPO before you pull the trigger. OpenAI is a privately held company, what is bitcoin is it safe and how does it work and its stock does not currently trade on any public exchange. You will not be able to buy OpenAI stock through a conventional broker until the Company has its IPO. Open AI is a private company and is not required to file public reports on its business, revenues, and earnings.
How to buy OpenAI shares if the company lists
If OpenAI were to go public, it would be listed on a stock exchange, allowing anyone with a brokerage account to buy shares directly. One of the most straightforward ways to gain exposure to OpenAI is by investing in companies that have significant stakes or partnerships with the company. Microsoft, for example, is one of OpenAI’s primary investors and partners.
J.P. Morgan Self-Directed Investing – Get Up to $700
If you’re bullish on the future of AI, it’s hard to imagine a world where Nvidia isn’t much bigger in the future than it is right now. Nvidia has a dominant market-leading position in developing the chips used to train and run supercomputers and high-powered AI networks. The two most relevant companies here are NVIDIA, which sells the best AI chips, and TSMC, which runs the factories used to make the chips.
How to Buy OpenAI Stock Before IPO
OpenAI is not publicly traded, but accredited investors can invest in private companies including OpenAI through Hiive. Options and futures are complex instruments which come with a high risk of losing money rapidly due to leverage. Before you invest, you should consider whether you understand how options and futures work, the risks a beginners guide to becoming a crypto miner 2020 of trading these instruments and whether you can afford to lose more than your original investment. Currently, OpenAI is privately owned and therefore, its stocks are not available for public purchase. The for-profit side of OpenAI has attracted considerable investment, with backing from major players such as Microsoft.
OpenAI has raised $12 billion over seven funding rounds, according to Dealroom.co. The most recent funding round was in January 2023 and left the company valued at an estimated $29 billion. OpenAI is not listed on any stock exchange, so you cannot buy OpenAI stock directly. Instead, you can invest in some of its shareholders and partners to gain exposure to the company and the AI sector. Furthermore, Alphabet’s diversified portfolio provides additional growth prospects, should the company wish to expand its AI operations.