Clicky

Home » Latest News » Is Openai Publicly Traded Company?

Is Openai Publicly Traded Company?

By

Andrew NG

| Updated on:

OpenAI has changed the game for artificial intelligence across the world, but One question often arises in discussions about OpenAI is whether the company trades publicly. In this article, we will explore this question in detail.

OpenAI’s ChatGPT has raised the bar for AI capabilities in the industry. Before, ChatGPT OpenAI’s, DALL-E, an image-generating tool, had gained major recognition in the AI world. 

With such high demand among the public and tech world, people are eager to invest in OpenAI. But the main question that arises for everyone, Is OpenAI publicly traded? Can you invest in OpenAI? 

Is Openai Publicly Traded Company?

Is Openai Publicly Traded Company?


No, Openai is not a publicly traded company; however, if Microsoft does take a large position in the company, investors will be able to gain indirect exposure to OpenAI by purchasing Microsoft shares. For those seeking direct exposure, be on the lookout for news of an initial public offering (IPO). 

Until late January 2023, there are no plans for OpenAI IPO. But the Wall Street Journal reported the AI lab is in talks with venture capital firms to sell about US$300 million worth of shares in the company. 

What does it mean to trade publicly?


Let’s start by explaining what it means to trade publicly, before getting into the specific details. A publicly-traded company has made available its stocks for purchase and sale to members of the public. These shares are traded on stock exchanges such as NYSE or NASDAQ. If investors have the necessary means, it is easy for them to buy these shares.

Why does OpenAI not trade publicly?


OpenAI may have chosen not to go public due to a variety of reasons. The company could be trying to avoid the additional scrutiny that comes with having outside shareholders and the regulations associated with trading publicly. Additionally, OpenAI may not have felt the need or desire to access resources provided by being listed on public exchanges.

OpenAI may choose not to offer their shares on the public market, as this may give them more control over operations and direction. Additionally, might not find it necessary to capital through a public offering.

Private investors, including Microsoft and Amazon, have provided OpenAI with the financial backing needed to continue advancing its technologies and expanding. Therefore, it does not rely on public funding for its operations.

OpenAI recently completed a $300 million funding round, securing a valuation between $27 billion and $29 billion, further solidifying its position as a leading AI research organization.

Will Openai Go Public?


Currently, no information is available on whether OpenAI will go public. As OpenAI requires an IPO (Initial Public offering) but you can still find out who owns Openai.

Can You Invest in OpenAI Lp?


OpenAI is the sole controlling shareholder of OpenAI Lp. Even though OpenAI Lp is a for-profit organization, it retails a formal fiduciary responsibility to OpenAI Inc. Therefore, you can’t invest in OpenAI Lp directly until OpenAI is a private company. 

Investors can only invest in OpenAI when the company goes public. However, you can invest in collaborated and partnered companies of OpenAI and gain exposure indirectly.  

What is the Stock for Openai?


There is very limited information available on OpenAI’s financial data. Therefore, the OpenAI stock price chart is not available. But, according to analysts’ estimation, OpenAI is worth about $20 billion as of 2022.

The organization started with seed funding of Elon Musk and his partner’s $1 billion. However, since then OpenAI’s firm valuation hasn’t been established. Even though the analysts estimate about $20 billion, no funds were raised for valuation. 

If OpenAI raises its funds again or files for an IPO, its valuation might be released publicly. But until OpenAI is publicly traded, OpenAI’s stock price chart won’t be available for viewing. 

Can You Buy Openai Stock?


No, Open AI is a private corporation. Therefore, you can’t buy OpenAI’s stock presently. OpenAI must go public through an IPO, for investors to buy shares OF OpenAI.

Until then, Investors can only purchase those companies’ stock that is publicly traded and listed in the stock sheet. However, you can purchase publicly traded stocks like Microsoft, Amazon, and Infosys with some exposure to Open AI stock. Read this article about How to Buy ChatGPT Stock?

As you know, you can’t buy OpenAI or Chatgpt stock directly, but you can buy Microsoft stock, and the best place to buy Microsoft shares is eToro. eToro has over 28.5 million users, it’s among the top investment platforms globally.

eToro securities trading is offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. mlyearning.org is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD.

OpenAI is a private company, so you can’t directly purchase its stock. However, you can invest in OpenAI through an indirect approach and gain exposure.

OpenAI includes various partnerships and collaborations with other companies; stocks of OpenAI can’t be purchased as the company is private.

However, you can gain exposure to OpenAI’s success by purchasing the stocks of these collaborating companies such as Microsoft. 

Nvidia’s GPUs have trained all the GPT-3 models. It is an advanced hardware and software infrastructure for AI, so, there is a high chance of value increase as the industry progresses. 

You can also invest in competitors to OpenAI, which might be an attractive option. Google’s DeepMind is an advanced AI company with models that rivals GPT3.

Also, if you want to invest in an industry for a while, then you can invest in Google’s parent company, Alphabet. 

However, it’s important to know companies like Microsoft, Google, and Nvidia contain massive exposure to OpenAI. These companies contain a massive revenue of billions of dollars.

So, the moment you invest in these companies, you are purchasing way more than just Artificial intelligence, so make sure you are purchasing the stocks after knowing the entire business of the company.  

Does Openai Launch IPO?


By January 2023, no visible plans for OpenAI IPO were on the horizon. However, on 5th January, it was reported by the Wall street journal that AI labs were in talks with a venture capital firm to sell about $300 million worth of shares in the company. 

Leave a Comment