By Jonathan Munan
Jonathan Munan
Contributor
Reviewed by Lincoln Olson
Lincoln Olson
Head of Content
Lincoln is an investor and content marketer. He has worked for financial advisors, institutional investors, and a publicly-traded fintech company. Lincoln holds degrees in Finance, Economics, and Accounting.
Open AI is not publicly traded.
Equitybee gives accredited investors access to hundreds of private, VC-backed startups before they IPO.
Sign up with Equitybee and get notified if Open AI becomes available.
OpenAI is ranked as one of the top 3 AI labs worldwide.
It has developed game-playing AI software that can beat humans at video games such as Dota 2, but it is best known for its AI text generator ChatGPT (GPT-3).
Before ChatGPT, Open AI’s AI image generator (Dall-E) was the talk of the AI world.
OpenAI has raised the bar in terms of what we can expect from artificial intelligence. Its applications can create art, write essays, and develop computer programs better than most humans.
If you take a moment to think about the implications of such advanced AI, it might seem like Open AI should be leading the charge when it comes to hot tech stocks.
And it is, sort of.
Can You Buy Open AI Stock? Is Open AI Publicly Traded?
If you’ve checked your stock trading app, you might have realized that there isn’t an Open AI stock symbol to find. This is because it’s a private company – they have not made their stock available for purchase by the public.
You can become an investor in private companies like Stripe, Reddit, and Instacart.
By funding employee stock options, Equitybee gives investors like you the opportunity to own stakes in private, VC-backed companies at past valuations. In exchange for funding the options, you will receive a percentage of future proceeds from successful liquidity events.
Register here and get the chance for exclusive access to Open AI and to start investing in private companies today.
Subject to availability.
Companies often choose to remain private if they do not need to raise capital via an IPO, or if they prefer to focus on their business development without the pressure of Wall Street.
Just because Open AI stock is not available to purchase directly doesn’t mean that you can’t get exposure to the company. Investing in private companies is possible, but sometimes requires a bit of creativity.
There are publicly-traded companies that collaborate with Open AI, and even a few that have invested in them during early funding rounds.
To explore how to buy Open AI stock indirectly, we need to look into who owns the company.
Who Owns Open AI?
In 2015, Open AI was founded as a non-profit organization by Elon Musk and a few other partners. Musk left the company in 2018. By 2019, a for-profit company called Open AI LP (LP stands for Limited Partnership) was created under the non-profit parent company, Open AI Inc.
In early 2019, Open AI LP received a $1 billion investment from Microsoft, which is by far the largest contribution from any company. GPT-3 is licensed exclusively to Microsoft and its Azure cloud service.
Amazon Web Services and Infosys also invested in Open Open AI, but the amounts invested were not released.
Does Microsoft Own Open AI?
On January 23rd, 2023, Microsoft announced a new multiyear, multibillion-dollar investment with OpenAI. Microsoft declined to provide a specific dollar amount, but rumors indicate Microsoft was in talks to invest as much as $10 billion.
This deal marks the 3rd phase of the partnership between the 2 companies, following previous investments in 2019 and 2021.
Microsoft is the real winner in AI so far – here’s a recap of how well they’re doing:
- $1 billion investment in Open AI in 2019
- Owns GitHub which released Copilot
- Dalle powers Bing Image Creator
- Valle produces an AI voice based on just 3 seconds of input
- GPT in Word, PowerPoint, Outlook, etc.
- GPT-powered Bing
- A rumored $10 billion, 49% stake in Open AI (+75% of the profit)
If you’re looking to bet on the future Open AI stock price and artificial intelligence in general, buying Microsoft is probably the best option.
How to Invest in Open AI Stock
Buying Microsoft (NASDAQ: MSFT) is one way you can get exposure to the success of Open AI, but it’s not the only way. It’s worthwhile to also look at partnerships and collaborations between OpenAI and other companies, even if they haven’t invested directly.
You need a brokerage account to buy shares of Microsoft. If you don’t have one, we recommend eToro.
We reviewed 22 online stock brokerages and eToro came out on top. It is one of the world’s most popular investing platforms with over 28.5 million users.
Plus, as of November, eToro is offering a $10 bonus* for U.S. residents.
$10 bonus for a deposit of $100 or more. Only available to U.S. residents. New accounts only. Additional terms and conditions apply.
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. https://www.wallstreetzen.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD.
For example, all GPT-3 models have been trained on Nvidia’s GPUs. Nvidia (NASDAQ: NVDA) has some of the most advanced hardware and software infrastructure for AI, so it’s likely that their stock will increase in value as the industry progresses.
Alternatively, investing in competitors to Open AI may be an attractive option. Google’s DeepMind is another one of the most advanced AI companies, with models that rival GPT3. To bet on the industry as a whole, you may want to consider Alphabet stock (NASDAQ: GOOGL) (Google’s parent company).
Remember, if you decide to invest in Microsoft, Nvidia, or Google to gain exposure to Open AI, these are massive companies with billions of dollars in revenue. When you invest in one of these stocks you’re buying more than just their Artificial Intelligence businesses, so be sure you like the ENTIRE company before choosing to invest.
How to Buy the Open AI IPO
While Open AI hasn’t announced any plans of going public yet, CEO Sam Altman stated in 2019 that they may need “more capital than any non-profit has ever raised.” As a reminder, the parent company Open AI Inc. is a non-profit, while Open AI LP is a for-profit business.
If they do decide to raise capital via an IPO, then Open AI stock will become available via your brokerage or trading app.
Here are the steps on how to buy Open AI stock if and when it becomes available:
- Create or login to your brokerage account (if you don’t have one, we recommend eToro – it’s free)
- Search for Open AI
- Select how many shares you want to buy
- Place your order
- Monitor your trade
Remember, you cannot buy Open AI stock with any brokerage or trading platform at this time. The company is not currently on the stock market.
Instead of waiting for its IPO, you can sign up with Equitybee and get notified if Open AI options become available.
Equitybee gives accredited investors access to hundreds of high-growth, VC-backed startups.
By funding employee stock options, investors like you can own stakes in private companies at past valuations. In exchange for funding the options, you will receive a percentage of future proceeds from successful liquidity events.
Register here and get the chance for exclusive access to Open AI.
Subject to availability.
Open AI Stock Price Chart
There’s little information from which to construct an Open AI stock price chart.
The company started with a seed funding of $1 billion from Elon Musk and his partners, but since then a firm valuation for Open AI has not been established. Analysts estimate it at approximately $20 billion, but it does not appear that they have raised any funds at this valuation.
If Open AI raises funds again, or files for an IPO, their valuation may be publicly released. Still, until they become publicly traded, there will not be a traditional Open AI stock price chart to view.
FAQs:
How to buy Open AI stock?
Since Open AI is a private company, you can’t buy its stock directly. Microsoft, Amazon, and Infosys are publicly traded companies with some exposure to Open AI stock.
How much is Open AI stock?
Analysts estimate Open AI is worth roughly $20 billion in late 2022. However, not enough financial data has been released to create an Open AI stock price chart.
What is Open AI stock symbol?
The Open AI stock symbol has not yet been released. If they decide to become public via an IPO, we’ll find out the ticker symbol at that time.
Who owns Open AI stock?
Open AI is privately owned, but Microsoft owns a significant stake. They invested $1 billion in 2019, and GPT-3 is licensed exclusively to them. A number of venture capital firms have also invested.
Where to Invest $1,000 Right Now?
Did you know that stocks rated as "Buy" by the Top Analysts in WallStreetZen's database beat the S&P500 by 98.4% last year?
Our November report reveals the 3 "Strong Buy" stocks that market-beating analysts predict will outperform over the next year.
