Founded in 2015, OpenAI is an AI research company focused on advancing artificial intelligence for global robotics growth. Microsoft’s $13 billion investment made it a key partner, integrating OpenAI’s AI models into several Microsoft products.
Many institutional traders have started trading the stock. However, since OpenAI is privately held, direct stock purchases aren’t possible yet. There are still some ways to gain exposure to OpenAI as an asset. Let’s take a look.
What is OpenAI?
OpenAI is an artificial intelligence research organization that develops and promotes AI technologies. Founded in 2015, it operated as a non-profit but later transitioned into a for-profit model (OpenAI LP) to raise funding.
OpenAI is known for creating advanced AI models, including ChatGPT, GPT-4, and DALL-E for text and image generation. It also developed Codex, which powers GitHub Copilot, and Whisper, an automatic speech recognition system. Its mission is to ensure that artificial general intelligence (AGI) benefits individuals while prioritizing authentication, transparency, and ethical AI development.
Who can buy OpenAI stocks?
OpenAI is currently a privately held company, meaning its shares are not publicly traded on stock exchanges like the NYSE or NASDAQ. Individual investors cannot purchase OpenAI stock through traditional brokerage accounts.
However, accredited/institutional investors, such as those meeting specific financial criteria, may have opportunities to invest in OpenAI. Accreditation typically requires a net worth exceeding $1 million (excluding primary residence) or an annual income of at least $200,000 ($300,000 for couples).
Accredited investors can explore private equity marketplaces like EquityZen or Hiive, where existing shareholders may sell their stakes. However, these transactions often require company approval, adding complexity to the process.
For those who don’t qualify as accredited investors, an alternative is to invest in publicly traded companies partnering with OpenAI. Microsoft, a major OpenAI investor, integrates its AI models into products like Azure and Copilot, offering indirect exposure to OpenAI’s advancements.
Opportunities and risks of investing in OpenAI
Opportunities
First-mover advantage in AI
OpenAI is a leader in artificial intelligence, developing technologies like GPT and DALL-E. Its early dominance in AI innovation positions it for long-term market influence and revenue growth.
Microsoft-backed growth
With Microsoft as a key investor, OpenAI benefits from massive funding, infrastructure, and integration into Microsoft’s products. This partnership strengthens OpenAI’s competitive edge and expands its enterprise adoption globally.
Expanding business model
OpenAI is diversifying revenue streams through API services, enterprise AI solutions, and consumer applications. This broad market reach increases scalability and improves long-term monetization potential in the AI-driven economy.
Risks
No confirmed IPO or exit strategy
OpenAI remains privately held, with no confirmed plans for an IPO. Investors face uncertainty regarding liquidity options, as secondary market transactions require company approval and have limited availability.
Regulatory uncertainty
AI regulations are evolving globally, and stricter policies could impact OpenAI’s growth. Compliance costs, ethical concerns, or potential restrictions on AI deployment pose financial and operational risks for investors.
Capped-profit structure
OpenAI operates under a ‘capped-profit’ model, limiting investor returns. Unlike traditional companies, its structure prioritizes AI protection and reinvestment, meaning financial gains may be restricted despite strong revenue growth.
How to trade in OpenAI via funds?
*This is an example only to enhance a consumer's understanding of the strategy being described above and is not to be taken as Blueberry providing personal advice.
Microsoft stock (MSFT)
Since Microsoft is OpenAI’s largest investor, purchasing Microsoft (MSFT) shares provides indirect exposure to OpenAI’s AI advancements. Microsoft integrates OpenAI’s models into Azure, Office, and Copilot, benefiting from AI-driven revenue growth.
As OpenAI scales, Microsoft’s financial gains increase, making MSFT stock a strong indirect play on OpenAI’s success. Investors can purchase MSFT through any brokerage account, gaining exposure to OpenAI without the risks of private equity.
AI-focused ETFs
AI-focused Exchange-Traded Funds (ETFs) invest in companies leading artificial intelligence advancements, including Microsoft, NVIDIA, and Alphabet. Such ETFs provide diversified exposure to OpenAI’s impact on the AI sector.
These funds spread risk across multiple AI-driven businesses, reducing volatility compared to individual stocks. Investors can trade AI ETFs through regular brokerage accounts, indirectly gaining from OpenAI’s growth while maintaining liquidity and diversification in their portfolios.
Venture capital or private equity funds
Accredited investors can access OpenAI through venture capital (VC) or private equity funds that invest in AI startups. Such firms often fund high-growth AI companies, including OpenAI’s competitors and collaborators.
However, these funds typically require high minimum investments and long holding periods. Investing in VC funds offers the potential for high returns but comes with significant risk due to the illiquid nature of private equity. Due diligence is also essential before committing capital to AI-focused private funds.
Tech mutual funds
Traditional investors can gain exposure to OpenAI’s AI impact through technology mutual funds that hold Microsoft, Alphabet, and similar AI-driven firms.
Unlike ETFs, mutual funds are actively managed, offering expert-driven investment decisions. They are ideal for long-term investors seeking AI exposure with reduced risk. Since OpenAI fuels AI growth within major tech firms, these funds indirectly gain from its advancements without direct private equity investment.
Indirect AI investments
Beyond Microsoft, investors can trade companies that are gaining from OpenAI’s AI revolution. Stocks like NVIDIA (NVDA), which supplies AI chips, or Amazon (AMZN), which integrates AI into cloud services, are strong indirect plays.
Companies using OpenAI’s APIs, such as Adobe (ADBE) and Salesforce (CRM), also gain from AI-driven productivity tools. By diversifying into AI infrastructure and adoption, investors can capitalize on OpenAI’s impact without direct exposure. This strategy reduces risk while gaining from the AI sector’s overall growth and OpenAI’s market influence.
Is investing in OpenAI worth it?
Investing in OpenAI offers exposure to AI innovation, but its private status limits direct opportunities. Accredited investors may access shares through private markets, yet liquidity remains uncertain. Microsoft’s deep partnership with OpenAI makes MSFT stock a strong indirect investment. AI-focused ETFs, tech mutual funds, and VC funds provide additional exposure with diversified risk.
However, OpenAI’s profit cap model and regulatory risks may limit returns. While OpenAI’s growth potential is undeniable, indirect investments through Microsoft and AI-driven stocks currently offer a more practical and accessible way to gain from its advancements in artificial intelligence.
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