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How To Buy OpenAI Stock in 2024

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OpenAI is not publicly traded, but accredited investors can still buy its stock.

Hiive is a marketplace where accredited investors can buy shares of private companies before they go public.

Sign up with Hiive and get access to OpenAI stock before its IPO.

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, OpenAI’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 OpenAI should be leading the charge when it comes to hot tech investments.

And it is, sort of.

Can You Invest in OpenAI Stock? Is OpenAI Publicly Traded?

If you’ve checked your trading app, you might have realized that there isn’t an OpenAI stock symbol to find. This is because it’s a private company – they have not made their shares available for purchase by the public.

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 OpenAI shares are not available to purchase directly doesn’t mean that you can’t get exposure to the company. Let’s discuss.

Who Owns OpenAI?

In 2015, OpenAI 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 OpenAI LP (LP stands for Limited Partnership) was created under the non-profit parent company, OpenAI Inc.  

In early 2019, OpenAI 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 OpenAI, but the amounts invested were not released.

Does Microsoft Own OpenAI?

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 OpenAI 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 OpenAI (+75% of the profit)

If you’re looking to bet on the future of artificial intelligence in general, buying Microsoft is probably the best option.

How to Invest in OpenAI

Buying Microsoft (NASDAQ: MSFT) is one way you can get exposure to the success of OpenAI, 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.

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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 NVDA will increase in value as the industry progresses.

Alternatively, investing in competitors to OpenAI 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 (NASDAQ: GOOGL) (Google’s parent company).

Remember, if you decide to invest in Microsoft, Nvidia, or Google to gain exposure to OpenAI, these are massive companies with billions of dollars in revenue. When you invest in one of these companies, 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 OpenAI 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 is a non-profit, while the subsidiary is a for-profit business.

If they do decide to raise capital via an IPO, then OpenAI will become available via your brokerage or trading app.

Here are the steps on how to buy shares in OpenAI if and when they becomes availabl:

  1. Create or login to your brokerage account (if you don’t have one, we recommend eToro)
  2. Search for OpenAI
  3. Select how many shares you want to buy
  4. Place your order
  5. Monitor your trade

Remember, you cannot invest in OpenAI with any brokerage or trading platform at this time. The company is not currently on the market.

OpenAI Price Chart

On Hiive, there are currently 67 open orders for OpenAI, with an aggregate price as listed below:

However, a traditional “price chart” is a bit elusive compared to publicly-traded companies.

Here’s what we do know: The company started with a seed funding of $1 billion from Elon Musk and his partners, but since then a firm valuation 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 they raise funds again, or file for an IPO, their valuation may be publicly released. Still, until they become publicly traded, there will not be a traditional price chart to view.

Any views expressed here do not necessarily reflect the views of Hiive Markets Limited (“Hiive”) or any of its affiliates. WallStreetZen is not a broker dealer or investment adviser. This communication is for informational purposes only, and is not a recommendation, solicitation, or research report relating to any investment strategy, security, or digital asset. All investment involves risk, including the loss of principal and past performance does not guarantee future results. There is no guarantee that any statements or opinions provided herein will prove to be correct. WallStreetZen may be compensated for user activity resulting from readers clicking on Hiive affiliate links. Hiive is a registered broker-dealer and member of FINRA / SIPC. Find Hiive on BrokerCheck.


FAQs:

How to buy OpenAI shares?

Since OpenAI is a private company, you can’t invest in it directly. Microsoft, Amazon, and Infosys are publicly traded companies with some exposure to OpenAI.

How much is OpenAI stock?

Analysts estimate OpenAI is worth roughly $20 billion in late 2022. However, not enough financial data has been released to create an OpenAI price chart.

What is the OpenAI ticker symbol?

The OpenAI ticker 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 OpenAI?

OpenAI 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.

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About the author

Jonathan Munan

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Jonathan is an experienced data analyst with a keen interest in technology. He has worked with hedge funds, cryptocurrency exchanges, and AI research firms. He has education in finance from the Canadian Securities Institute and is a lifelong student of economics.