Updated May 12, 2024

How to Buy OpenAI Stock

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Looking to invest in OpenAI? Discover an opportunity for indirect investment through its major investor Microsoft. Read on.

As ChatGPT continues to gain immense popularity and attracts substantial investments from major players, it's hard not to notice the buzz around OpenAI.

Perhaps you're wondering how you could ride the wave of OpenAI's success.

In this guide, dive into the different investment opportunities for OpenAI (plus, some risks you should consider).

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Can you buy OpenAI Stock?

No, OpenAI stock is not currently available for public trading as it is not listed on any stock market.

However, you can still gain exposure to OpenAI by investing indirectly through the shares of its major investors and partners. Currently, Microsoft has been the biggest investor in OpenAI since 2019.

Here's how you can start indirect investments in OpenAI.

What is OpenAI?
OpenAI is an AI research lab and company that aims to create advanced and beneficial artificial intelligence systems. It was founded in 2015 as a nonprofit organization by Elon Musk and other partners. In 2019, a for-profit entity called OpenAI LP (Limited Partnership) was created as a for-profit subsidiary.

How to Indirectly Invest in OpenAI

Indirect investment in OpenAI can be made by buying shares of its major investors, like Microsoft.

You can buy Microsoft stock using any brokerage or trading app. There are no special qualifications needed. Here are the steps:

  1. Create your account on their website or app.
  2. Fund your account. Note that some platforms require a minimum funding amount.
  3. Search for Microsoft (ticker symbol MSFT).
  4. Enter how many shares or the dollar amount you want to buy.
  5. Place order.

Once you have made the purchase, it is important to monitor your investment.

When considering investing in Microsoft, remember that its financial performance can be influenced by various factors besides its partnership with OpenAI. It's important to conduct thorough research or consult with a financial advisor before making any investment decisions.

OpenAI and Microsoft Partnership

This year (2023) marks the third phase of Microsoft and OpenAI's partnership. Microsoft has previously invested in 2019 and 2021, with a total of more than $3 billion.

While the company has released no official figures, industry analysts estimate that Microsoft's 2023 investment in OpenAI could amount to around $10 billion.

OpenAI and Microsoft have collaborated in various ways. For example, Microsoft has used OpenAI's GPT-4 to improve its Bing chatbot. It has also integrated the technology into popular tools like Word, Excel, and the Azure cloud computing platform.

Microsoft is developing and implementing specialized supercomputing systems to support OpenAI's research initiatives. Moreover, Microsoft Azure will provide OpenAI with all the necessary cloud computing resources.

Does Microsoft own OpenAI?
No, Microsoft does not own OpenAI. However, Microsoft has made multibillion-dollar investments in OpenAI since 2019. Microsoft has formed a strategic alliance with OpenAI to incorporate their AI advancements into its products and services.

How to Buy OpenAI Stock Before IPO

Want to invest in OpenAI before it IPOs? Get ahead of the curve with EquityZen - a platform that gives accredited investors access to private companies before they go public. Here's how to get started:

  1. Sign up with EquityZen
  2. Search for OpenAI
  3. Invest via a fund that owns shares of OpenAI

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If it's not available yet, users will be notified once it is.

What is the OpenAI stock symbol?
OpenAI has no stock symbol yet because it remains a private company. Once it goes public, the OpenAI stock symbol will also be released.

Why invest in OpenAI

Investing in OpenAI can be a promising opportunity for several reasons.

One of the notable developments is ChatGPT, an advanced language model developed by OpenAI. ChatGPT is designed to have interactive and engaging conversations with users. This makes it a valuable tool for various applications like customer support, virtual assistants, and more.

Some analysts say that ChatGPT sets the record for the fastest-growing user base. It reached 100 million monthly active users in January 2023, just two months after its launch. This highlights rapid adoption and popularity in the market.

ChatGPT's specific revenue or profit share is not publicly disclosed. Nevertheless, OpenAI's success with ChatGPT and its other AI technologies is expected to positively affect its financial performance.

Microsoft and other industry leaders have invested significantly in OpenAI. This demonstrates confidence in the company's potential for generating revenue and profitability.

Can you buy ChatGPT stock?
No, ChatGPT is owned by OpenAI, which is not publicly traded on stock exchanges. It is not possible to purchase stock in ChatGPT or OpenAI directly.

What is OpenAI's valuation?

OpenAI is believed to have a value of approximately $27-$30 billion. This is based on a reported funding round that reached $300 million.

However, determining OpenAI's exact valuation can be challenging since it is a private company and does not publicly disclose its financial reports.

Analysts can only make estimates based on the funding rounds and investments made by major investors in the company. These estimates provide insights into OpenAI's potential value but may not reflect its current valuation accurately.

Now, let's check other risks that you need to look into when investing in OpenAI.

Is OpenAI profitable?
Yes, OpenAI is profitable. The company reportedly had a $2 billion revenue in 2023. This puts OpenAI on par with big players like Google and Meta, who also hit the billion-dollar mark within their first decade.

Risks in Buying OpenAI Stock

When considering investing in OpenAI stock, it's important to understand that inherent risks are involved. Some of these include:

  1. Volatility
    It's important to remember that the OpenAI stock can experience significant fluctuations in value over short periods. This is because the stock market can be highly volatile. Various factors, such as market sentiment, economic conditions, and technological advancements, can impact the stock's price.

  2. Competition
    The industry in which OpenAI operates is highly competitive. Numerous tech companies and AI startups are striving to gain market share. This heightened competition could potentially affect OpenAI's growth and profitability.

  3. Regulatory Changes
    The AI industry is constantly changing in terms of regulations and policies. Any changes in laws or government policies may affect the operations and financial performance of OpenAI.

  4. Intellectual Property
    The protection of intellectual property is crucial in the tech industry. If OpenAI faces challenges safeguarding its technology and innovations, it may lead to legal problems or loss of competitive advantage.

  5. Data Privacy and Security
    OpenAI must prioritize robust data privacy and security measures as it works on data. This is to avoid any breaches or privacy concerns that could damage its reputation and customer trust.

A smart move is to diversify your investment portfolio. It's like spreading your investments across different things to reduce risks tied to any stock.

And if you need help with how to go about it, talking to a financial advisor is a great idea. They can give you personalized advice that matches your goals and how much risk you're comfortable with. It's all about making your money work for you in the best way possible!

If you have second thoughts about OpenAI, you can also explore other options in the AI Industry. These include projects of Google, Facebook, or Amazon.

How much does OpenAI stock cost?
OpenAI is not yet publicly traded so there's no OpenAI stock yet. We don't know yet whether the company will have an IPO.

OpenAI Management Team

Here are the management team of OpenAI:

  • Sam Altman: Chief Executive Officer
  • Mira Murati: Chief Technology Officer
  • Greg Brockman: President and Co-Founder
  • Brad Lightcap: Chief Operating Officer
  • Ilya Sutskever: Co-Founder and Chief Scientist
  • Janine Korovesis: VP Finance
  • Peter Welinder: VP Product & Partnerships
  • Bret Taylor: Chairman of the Board

Who owns OpenAI ChatGPT?
ChatGPT is owned by OpenAI. The CEO and co-founder of the company is Sam Altman. Altman has served on the executive board since 2015. ChatGPT was released in November 2022.

What are the alternatives to OpenAI?

In the AI Industry, many companies are creating products similar to ChatGPT. Big names like Google, Facebook, and Amazon also have their own technologies. Let's check them out!

  1. Alphabet Inc. (NASDAQ: GOOGL)
    Alphabet Inc., the parent company of Google, invests a significant amount of resources in the research and development of AI.

    Google's AI ventures comprise programs such as Google Brain and DeepMind, which strive to progress in AI technology and its practical applications.

  2. Meta Platforms, Inc. (NASDAQ: META)
    Meta is the parent company of Facebook, Instagram and WhatsApp. Facebook places a significant emphasis on AI and has established its own AI research division known as Facebook AI Research (FAIR).

    The company utilizes AI in various aspects, including content moderation, ad targeting, and natural language processing.

  3. Amazon (NASDAQ: AMZN)
    Amazon has made impressive progress in AI, with products such as Amazon Alexa and Amazon Web Services (AWS) AI services. This technology is used to improve customer experiences and streamline operations.

    NVIDIA is a global microchip manufacturer that invests heavily in artificial intelligence. One of NVIDIA's most prominent investments is in Recursion, an AI startup. Their teamup with Recursion is geared towards supercharging drug discovery using the startup's AI and cloud expertise. It's a win-win for both tech and healthcare as it brings cutting-edge innovation to the table.

  5. IBM (NYSE: IBM)
    IBM is a big player in the tech world with a history of AI research and development. Their Watson AI program is pretty famous—it can handle questions and give responses that sound just like a person. As of August 2023, IBM's total market capitalization reached $128 billion, making it a major player in the AI stock scene.

ETFs with Exposure to OpenAI

OpenAI remains private so you won't find its stock in ETFs. However, you can still invest in ETFs comprising of companies that have the same technology as OpenAI. Here are some ETFs that you can invest in:

  1. Roundhill Generative AI and Technology ETF (NYSE: CHAT)
    This ETF has a dynamic approach to choosing assets for inclusion. If you want to invest in a similar generative chat technology like that of ChatGPT, you can invest in this ETF.

  2. Global X Robotics and Artificial Intelligence ETF (NASDAQ: BOTZ)
    This ETF includes companies associated with the development of AI.

  3. ROBO Global Robotics and Automation ETF (NYSE: ROBO)
    This fund gives you access to cutting-edge tech companies, like those leading the way in AI-driven robotics and automation.

Bottom Line

It's important to note that as of now, you do not have the option to buy OpenAI stock. However, there is a strategic way to gain exposure to OpenAI's potential. That is through investing in Microsoft.

Also, the AI industry is dynamic. OpenAI isn't the only player in the game. You've got heavyweights like Google, Facebook, and Amazon stepping into the ring too. These companies can be alternative investment options.

But before making any investment decisions, make sure to conduct thorough research or seek professional advice. This ensures that your investment choices align best with your investment goals.

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