OpenAI, an American based artificial intelligence (AI) research lab, is taking the world by storm by developing new technologies. ChatGPT by OpenAI is one of the technologies that has become a viral platform since its release in late 2022 . The surprising thing about this platform is that it was able to attract more than 1 Million users in just 5 days after its release.
OpenAI is making progress in every field, whether it’s education, business, creative writing, and more, and is ranked as one of the top 3 AI labs worldwide, but is openAI Publicly traded?
Thanks to the releases of OpenAI’s latest language model, GPT- 4 and ChatGPT, the global artificial intelligence (AI) market size is expected to reach USD 2,575.16 billion by 2032, progressing with a compound annual growth rate (CAGR) of 19% from 2023 to 2032. Given the high demand for this company, potential investors are eager to invest in OpenAI, but thinking, is openAI publicly traded? Or, how do you invest in OpenAI stock?
Let’s explore this question in detail to find the answer!
Table of Contents
What Does it Mean to Trade Publicly?
Before digging deep into the discussion, let’s first clarify what it means to trade publicly. When we say a company is traded publicly it means that it has made its share available in the stock market so that the general investors can sell or buy it.
These shares then go on trade in stock exchanges like NYSE or NASDAQ, which the potential investors can purchase.
Is OpenAI Publicly Traded?
No, OpenAI is not a publicly traded company. This company has’t listed its share in any stock exchange market, so it can’t be traded publicly. Currently, it’s a private entity that is primarily owned by its founders and investors only. The general public can’t buy its shares.
In order to go public, OpenAI requires an IPO (Initial Public Offering). To date, OpenAI has no plans to have an IPO. The company’s CEO, Sam Altman, says that they’ve no plans to make the company public in the near future as he thought it would limit their decision making freedom.
However, a report from the Wall Street Journal reveals that openAI is in talks with investors to potentially sell the company’s shares of over $29 Billion worth. If you still want to invest in OpenAI, there are a lot of indirect ways.
What is the OpenAI Stock Price Today?
Unfortunately, OpenAI hasn’t revealed much information about its stock price and its financial data. But there is little information available based on studies from which we can construct an openAI price chart.
According to recent studies, the estimated worth of OpenAI in 2021 was $14 Billion, which has doubled (reached about $29 Billion) in 2023. In the beginning, the company started seed funding of about $1 Billion from Elon Musk and his partners.
In 2019, Microsoft invested about $3 Billion in OpenAI LP, according to Cade Metz and Karen Weise (tech reporters) from the New York Times. Then, in January 2023, Microsoft made another big investment of $10 Billion in OpenAI. However, the real stock price of OpenAI is still unclear from these fundings.
However, if OpenAI collects more funds in the near future or decides to become a public company, its valuation may be released publicly. Until then, there is no official OpenAI stock price chart.
Why Does OpenAI Not Trade Publicly?
OpenAI has decided not to trade publicly for various reasons.
- Firstly, it helps them avoid the extra scrutiny and rules that come with having external investors and trading publicly. Plus, OpenAI doesn’t feel that it needs outside resources that public exchanges offer.
- According to Sam Altman, the CEO of OpenAI, by not going public, OpenAI has more control over their actions and where they’re heading.
- Additionally, OpenAI has a financial support from private investors like Microsoft and Amazon, so it don’t need any funds for its operations
- According to a study by TechCrunch, OpenAI has recently completed a funding round of US$300 Millions, which made them worth between $27 Billion – $29 Billion. This solidifies OpenAI’s status as a top AI research organization.
What is the Effect of OpenAI Not Being Publicly Traded?
OpenAI’s decision to not be publicly traded comes with a few significant consequences. Firstly, it indicates that the general public can’t buy shares in the company and can not benefit from any of its financial gains.
Additionally, this choice protects OpenAI from intense scrutiny faced by publicly traded firms. This freedom empowers OpenAI to focus on its research work without being pressurized by the short-term demands of public investors.
When Will OpenAI Go Public?
OpenAI will go public only when it will release an initial public offering (IPO). As per September 2023, there are no discussions about OpenAI IPO (initial public offering) release. So, it’s unclear whether the company will decide to become publicly traded or not.
However, the Wall Street Journal reported on January 5, 2023, that OpenAI is in ongoing discussions with venture capital firms. In these discussions, OpenAI talks about selling a minimum of US$300 million worth of its existing company shares.
How to Invest in OpenAI Stock?
Unfortunately, there is no direct way to invest in OpenAI stock as the company is not publically traded on NYSE or NASDAQ in the U.S. yet. However, potential investors can indirectly invest in openAI by collaborating with its partnering companies.
For example, individual investors can buy Microsoft stock (MSFT) to have an indirect share in openAI stock.
On the other hand, all GPT-3 models have been trained using Nvidia’s GPUs. SO investing in Nvidia’s stock (NVDA) could be a better option.
Investors can also consider investing in OpenAI’s competitors. Google’s DeepMind is another highly advanced AI company with models that compete with GPT-3. To capture the broader AI industry’s potential, you could consider investing in Alphabet stock (GOOGL), which is Google’s parent company.
Bear in mind Microsoft, Nvidia, and Google are huge corporations with Billions in revenue. When you invest in one of these stocks, you’re not just investing in their AI businesses but the entire company. So, before making an investment in any company make sure you’ve sufficient knowledge about it.
1 – Can I buy OpenAI shares?
No, you can not buy OpenAI shares as it’s not a publicly traded company.
2 – Will OpenAI stock go public?
Currently , there is no news on whether OpenAI will have an IPO in the near future or its stock will go public.
3 – Is OpenAI a public company or a Private?
OpenAI is not a public company. It’s a private corporation that has no shares available in the stock market for public trade.
4 – What is the stock symbol of OpenAI?
As OpenAI is not a public company, it doesn’t have a stock symbol yet. The stock symbol for OpenAI will become available only when it goes public.
That’s all about “Is OpenAI Publicly traded?” It’s clear from the discussion that OpenAI is not publicly traded yet. The company has decided to remain private for various reasons. It has not released its IPO which means its shares are not listed in the stock exchange market. Individual investors can only invest in OpenAI stock by collaborating with OpenAI’s partnering companies i.e., Microsoft.