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OpenAI IPO: All You Need to Know + How to Buy Shares

He has worked with hedge funds, cryptocurrency exchanges, and AI research firms. He has education in finance from the Canadian Securities Institute and is a lifelong student of economics. True, you can’t get pure OpenAI stock exposure as a retail investor, but there are methods to put some capital in this company.

  • 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.
  • See full non-independent research disclaimer and quarterly summary.
  • Perhaps the most obvious is through Microsoft, which has invested billions into the company and enjoys a strong symbiotic relationship through the Azure platform.
  • It has also integrated the technology into popular tools like Word, Excel, and the Azure cloud computing platform.
  • In April 2023, Musk incorporated xAI, a rival AI firm that recently acquired X (formerly Twitter) and is valued at $113 billion.
  • OpenAI was founded in 2015 by a group of investors that included Peter Thiel, Elon Musk, and current CEO Sam Altman, who pledged a total of $1 billion to the project.

Downsides to Buying OpenAI Stock

As a private company, its shares are not available on public markets like the New York Stock Exchange (NYSE) or the Nasdaq. OpenAI’s operations are primarily funded through venture capital and large institutional investments. As the field continues to evolve, options such as NVIDIA and ARKQ ETF present viable alternatives for investing in the broader AI market. Another indirect way to invest in OpenAI is by purchasing exchange-traded funds (ETFs) that focus on the AI sector. These funds invest in a basket of companies that are involved in AI, including those developing or using AI technology. 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.

Pre-IPO Secondary Markets

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.

  • The parent company, OpenAI Inc, remains a non-profit with a for-profit subsidiary called  OpenAI Limited Partnership.
  • Then there’s the massive energy and metals requirements of the data centres needed to run AI applications, alongside the potential military applications.
  • It also provides the best “entire package” of AI-enterprise products, complete with hardware, software, and support services.
  • We did not receive compensation from any companies whose stock is mentioned in this report.
  • OpenAI is not publicly traded, but accredited investors can invest in private companies including OpenAI through Hiive.
  • Companies often choose to remain private if they do not need to raise capital via an IPO, or if they prefer to focus on their business development without the pressure of Wall Street.

Microsoft doesn’t own OpenAI, but it’s the biggest investor in this company, and many of OpenAI’s programs run on Microsoft-owned properties like Bing. As hinted above, OpenAI has a distinctive dual structure, including the original nonprofit portion and the for-profit OpenAI Limited Partnership. Although Mr. Altman likely has a lot of OpenAI stock options, we can’t say he owns the company. In 2015, OpenAI was founded as a non-profit organization by Elon Musk and a few other partners. By 2019, a for-profit company called OpenAI LP (LP stands for Limited Partnership) was created under the non-profit parent company, OpenAI Inc.

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.

While OpenAI has not made any clear statements regarding an IPO, rumors and speculations persist. If the company continues to grow and expands its offerings into more mainstream applications, an IPO might be on the horizon. In that case, investors could buy OpenAI stock just like they would any other publicly traded company. AI research is extremely expensive, and venture capital firms will not fund a non-profit. C3ai has been known for its unstable performance in the stock market, but the company saw a 5.6% year-on-year improvement between 2022 to 2023.

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.

How To Buy OpenAI Stock in 2025

Companies often choose to remain private if they do not need to raise capital via an IPO, or if they prefer to focus on their business development without the pressure of Wall Street. If you take a moment to think about the implications of such advanced AI, it might seem like OpenAI should be leading the charge when it comes to hot tech investments. OpenAI has raised the bar in terms of what we can expect from artificial intelligence.

Can You Invest in OpenAI Stock? Is OpenAI Publicly Traded?

That means OpenAI stock is still not available to the general investing public. Unless OpenAI announces an IPO, retail investors have to settle for public companies with close ties, competing AI brands, or tech-heavy ETFs. Any accredited investors looking into how to buy OpenAI stock could use Hiive to invest in shares today.

Hiive is a marketplace that connects shareholders of private, VC-backed companies who want to sell their pre-IPO shares to accredited investors. On Hiive, sellers are typically employees, venture capital firms, or angel investors. Each seller can set their own asking price and quantity of volume offered.

When could the OpenAI IPO take place?

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.

OpenAI Products

Pitchbook data now suggests that the San Francisco company is worth substantially more than any venture capital-backed firm at the time of their IPO, including both Meta Platforms and Uber. You can also trade the OpenAI IPO using leverage through a variety of products with us. This means you could gain or lose money quickly and could end up losing more than your initial deposit. When dealing shares, you own the stock and become a shareholder in the company. You’ll profit if the share price rises above the point at which you bought, or potentially from any dividends paid. 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.

If you’re convinced that a company has a bright future, it’s how to keep safe from cryptocurrency scams still worth a try as long as you have fully considered the risks of pre-IPO investing. However, that does not mean you can’t get any exposure to the company. Indeed, there are other firms you can invest in that are in tight partnerships with OpenAI, usually as major shareholders and investors that have a high stake in the company. They invested $1 billion in 2019, and GPT-3 is licensed exclusively to them.

Whilst we try to keep information accurate and up to date, things can change without notice and therefore you should do your own research. These startups may one day become major players in the AI space, and they might even form partnerships with OpenAI or be acquired by larger companies in the AI ecosystem. Learn all about the 12 valuation ratios that allow investors to quickly estimate a business’s value relative to its … Vertigo Studio SA is not responsible and cannot be held liable for any investment decision made by you. Before using any article’s information to how to buy on bitmart make an investment decision, you should seek the advice of a qualified and registered securities professional and undertake your own due diligence. 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.

Make a qualifying single initial deposit of $100 – $499.99 during the promotional period to get 3 fractional shares, each valued between $3 – $3,000. Maintain a balance of $100 – $499.99 in the account for 30 days or more. Before crypto com free $25 cro incentive earn code bitcoin btc bonus money crypto eth investing in OpenAI, take time to understand the risks related to this privately held company.

For investors with access to venture capital (VC) or private equity markets, another way to invest in OpenAI would be through funds that have access to private company investments. These funds typically invest in companies before they go public, and they sometimes include shares of high-growth tech firms like OpenAI. 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. 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.