Microsoft’s OpenAI Stake Could Reach $100B with Anthropic’s Valuation Surge

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Microsoft’s stake in OpenAI could potentially reach a staggering $100 billion if the valuation surge of AI start-up Anthropic is anything to go by. According to Oppenheimer analyst Timothy Horan, if Anthropic’s reported valuation of between $20 billion and $30 billion is accurate, based on its annualized revenue rate of approximately $100 million, then the company is valued at an impressive 200 to 300 times its sales. Applying a similar calculation to OpenAI, even on the lower end of the range, would put its valuation at around $200 billion, making Microsoft’s 49% stake worth close to $100 billion.

Such sky-high valuations for AI start-ups indicate that excitement around generative AI has reached a whole new level. OpenAI has recently been reported to be in talks with investors for a potential sale of shares valued between $80 billion and $90 billion. However, even at these figures, OpenAI would still appear cheap when compared to Anthropic’s potential multiple.

While these valuations are currently only on paper, they do serve as validation for the potential value of Microsoft’s stake in OpenAI and its ChatGPT technology. Investors may approach these numbers with caution, but at the very least, they highlight the immense possibilities within the AI industry.

Horan maintains an Outperform rating on Microsoft stock, with a target price of $410. In early trading on Thursday, Microsoft’s stock was down 0.3% at $318.17.

This article was written by Adam Clark for [publisher name].

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Frequently Asked Questions (FAQs) Related to the Above News

What is the potential value of Microsoft's stake in OpenAI?

Microsoft's stake in OpenAI could potentially reach $100 billion based on the valuation surge of AI start-up Anthropic and the reported valuation of OpenAI.

How does the valuation of Anthropic impact OpenAI's potential value?

If Anthropic's reported valuation of $20 billion to $30 billion is accurate, and considering its annualized revenue rate, it suggests that companies in the generative AI space can be valued at remarkable multiples of their sales. Applying a similar calculation to OpenAI, its valuation could be around $200 billion, making Microsoft's 49% stake worth close to $100 billion.

What does this indicate about excitement around generative AI?

The sky-high valuations of AI start-ups like Anthropic suggest that excitement around generative AI has reached a whole new level. This indicates the immense possibilities and potential value within the AI industry.

Are these valuations for OpenAI and Anthropic confirmed?

These valuations are currently only on paper and speculative. While they serve as validation for Microsoft's stake in OpenAI, investors should approach these numbers with caution.

What is the potential sale value of OpenAI shares?

OpenAI has been reportedly in talks with investors for a potential sale of shares valued between $80 billion and $90 billion. However, even at these figures, OpenAI seems relatively cheap compared to Anthropic's potential multiple.

What rating and target price does Oppenheimer analyst Timothy Horan have for Microsoft stock?

Oppenheimer analyst Timothy Horan maintains an Outperform rating on Microsoft stock, with a target price of $410.

What is the current stock price of Microsoft?

In early trading on Thursday, Microsoft's stock was down 0.3% at $318.17.

Who wrote this article and where was it published?

This article was written by Adam Clark for an undisclosed publisher.

Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.

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