How to Invest In OpenAI
Artificial Intelligence or AI is a thing that not only sounds cool but even much more fascinating when in Use. Most companies have started integrating AI into their products. Day by day, People started talking about it and its hype kept on increasing. And OpenAI is one of those companies that took world by storm. After the launch of their most popular product ChatGPT. More than 200 Million people used it by mid-2024.
What is OpenAI?
OpenAI is an Artificial Intelligence startup based in California. Back in 2015, OpenAI was introduced to the world as a non-profit Artifical research company. And their mission is to develop AI for the benefit of humanity. To know more check their About Page.
It was founded by not one but a bunch of world-class researchers and scientists, with tech entrepreneurs Salt Altman and Elon Musk as Co-Chairs. This company is also known for its popular AI products, ChatGPT and DALL-E.
But in 2018, Elon Musk left the company after some disagreements over percentage. And started his own Artifical Research company named xAI.
Earlier, OpenAI was only started as a non-profit company but in 2019 company board decided to launch a for-profit Arm called OpenAI LP to pursue its research missions that cost billions of dollars.
Can I invest in OpenAI?
Basically, OpenAI is a private research company. So you can’t directly invest in it. Because they are not trading or listed on any public stock exchange.
To date company never announced or thought of launching an IPO [Initial Public Offering ] but as a private company, it gets funding from different other companies.
In October 2024, OpenAI raised $6.6 Billion new funding at a $157B post-money valuation to accelerate progress on their mission. And this round was led by Thrive Capital, and also included Microsoft, Nvidia, SoftBank, Khosla Ventures, Altimeter Capital, Fidelity, Tiger Global, and MGX.
In total OpenAI raised $17.9 Billion in 9 diffrent Rounds. And largest round held by Microsoft in January 2023.
So directly you can not invest in OpenAI but indirectly you can participate in companies that owns a majority stake in the company.
Microsoft is one of those companies. And they are pouring billion’s of dollar in OpenAI. And they are also integrating OpenAI products into their system.
Moreover, you can also check the majority of stakeholder in this AI company and buy their shares to invest indirectly. But this is not a finacial adivice at all. Do your own reserach before risking you each hard earned penny.
