The question of whether it is possible to invest in OpenAI is one that has been on the minds of many tech-savvy investors who are looking to capitalize on the rapid growth of the modern-day digital world. Generative A.I. is the latest buzzword to have captured the imagination of the tech industry, with countless investors vying for the chance to benefit from the technology.
Generative A.I., unlike other types of artificial intelligence, utilizes past data not just to identify information, but to also create new content from it. A shining example of this sort of AI technology is Microsoft-backed OpenAI’s creation: ChatGPT, which is a large language model capable of generating human-like responses using only a text prompt as input.
Unsurprisingly, investors are keen to know how they can get involved with OpenAI and benefit from its meteoric rise. The truth is that OpenAI is still only a private entity; it is not listed on a stock exchange, meaning general investors cannot buy shares in the company. There are numerous reasons why OpenAI may not be publicly available, such as a desire to take control over its operations or the lack of need for the capital that a public release would bring, given its private investors, including tech giants Microsoft and Infosys.
However, one surefire way to gain exposure to OpenAI is to buy stock in Microsoft instead. After investing a whopping $1 billion in OpenAI back in 2019, Microsoft has already enjoyed significant success leveraging the company’s cutting-edge technologies such as DALL-E and VALL-E. These technologies help power the tech giant’s Image Creator and text-to-speech synthesis applications, its new-fangled search engine, and its AI-powered coding assistant Copilot.
Elon Musk, the visionary businessman and founder of SpaceX, was once at the helm of OpenAI. However, after Microsoft’s massive cash injection, he has since distanced himself from the corporation as he believed it no longer resembled his original vision of an open-source, not-for-profit organization.
Although private investment isn’t currently possible, investors with an appetite for OpenAI can benefit from keeping an eye on the rumors that Microsoft could buy a 49 percent stake for $10 billion, which would value OpenAI at around $20 billion. It is also important to remember that market predictions of OpenAI’s worth were based on fairly low revenue estimates that are likely outdated due to its record-breaking user base of 100 million by early 2021. Furthermore, investments by VC firms Founders Fund and Thrive Capital suggest a valuation of up to $29 billion.
To summarize, investment in OpenAI is currently not a possibility. But this hasn’t stopped adventurous investors from seeking their fortunes in the company’s success. Owning Microsoft shares is considered a great way to capitalize on the rise of ChatGPT, as the tech giant enjoys preferential access to cutting-edge technologies and integrations. However, for now, investors must wait for OpenAI to become publicly available before being able to participate in its success.
