Summary
The OpenAI stock has turned into a hot trend among the investors as AI keeps growing. An OpenAI IPO is yet to be declared, but there are strategic ways of investing in AI innovation today.
The OpenAI stock is among the most expected investment opportunities in the technological sector. As every industry, such as healthcare, is being digitized with the advent of artificial intelligence, investors are closely monitoring OpenAI that creates ChatGPT and other revolutionary AI models. The OpenAI is a private company regardless of its rapid growth and growing topicality. The big question is, therefore, whether an OpenAI IPO will happen any time soon and what investors can do to position themselves in the AI space in the meantime.
Let us deconstruct what is known about the potentials of the entry of the OpenAI into the public markets and how to invest in AI even before the entry of OpenAI shares into the market.
What We Learn about a Potential OpenAI IPO
Even though the OpenAI stock is drawing a massive amount of attention, the company is not publicly issuing an IPO yet. OpenAI was started as a nonprofit in 2015 and converted to a capped-profit model in 2019 to be eligible for venture capital. Such an unusual arrangement enables it to raise funds and also at the same time, conform to its mission of making artificial general intelligence beneficial to every mankind.
Microsoft has been a strong supporter of the company as it invested a sum of more than 13 billion dollars in OpenAI. This alliance provides Microsoft with the unique access to the OpenAI models which have become part of Microsoft 365 Copilot, Bing, and Azure.
In spite of this expansion, the OpenAI CEO Sam Altman publicly declared that the company does not need an IPO at the moment. Some of the reasons mentioned include the need to consider long-term safety objectives and to avoid short-term influence of the shareholders in the market. Nevertheless, speculation has not been discouraged. Considering the growing AI buzz, analysts are of the opinion that one day OpenAI stocks may be listed on a stock exchange, which makes it one of the most coveted IPOs in tech history.
Best way to invest in AI before OpenAI Shares go public
Although you can not share OpenAI stock yet, it is possible today to have exposure to the AI boom through smart ways. The following are some of the strategies to be used:
1. Invest in Firms collaborating with OpenAI
The purest way to be exposed to the success of OpenAI is by Microsoft (NASDAQ: MSFT). Since it is the main investors and collaborator of OpenAI, Microsoft has incorporated its models in most of its software platforms and cloud services. Investing in Microsoft, the shareholders can have an indirect benefit of OpenAI further development and innovation.
2. Look at Public AI-Based Companies
Other publicly traded companies that have been leading in developing and applying AI include:
· NVIDIA (NASDAQ: NVDA): Being a major producer of AI-oriented GPUs, NVIDIA is the software behind most AI models, and enables the models deployed by OpenAI.
· Alphabet (NASDAQ: GOOGL): Alphabet is one of the biggest stakeholders in AI research and infrastructures through Google DeepMind and other projects.
Also from this list, which competes directly with OpenAI in some aspects, is: • Meta Platforms (NASDAQ: META): Open-source AI models and infrastructure are being heavily invested in by Meta.
Amazon (NASDAQ: AMZN) has a wide variety of services to support AI developers as well as incorporates generative AI into products.
3. Explore AI-Themed ETFs
In case you want to diversify, exchange-traded funds (ETFs) that focus on the AI industry are an easily available method of investing in a variety of companies that dominate the AI industry. Others among the favors are:
· BOTZ Global X Robotics and Artificial Intelligence ETF
· iShares Robotics and Artificial Intelligence, ETF (IRBO)
Available as an ETF, the fund is known as ARK Autonomous Technology and Robotics ETF (ARKQ).
These funds have the holdings of companies such as NVIDIA, Microsoft, and other AI innovators and provide sufficient coverage of the development of the sector.
Read Article: Blockchain Technology Explained
Reason why Investors are anticipating OpenAI Shares
OpenAI stock is not the only stock whose hype is not hype. The company has placed itself at the center of generative AI and their technologies are already transforming the way individuals work, communicate and create. The market demand was at a scale never seen before as ChatGPT garnered more than 100 million users in several months of its existence.
In addition, OpenAI persistently expands the limits of GPT-4, DALL·E, Codex, and others, and is used in the fields of education, design, customer services, and software development. The company also introduced a business version of ChatGPT, aimed at business adoption on scale.
What Can Slack an OpenAI IPO?
Although the interest of the investors is high, there are reasons why OpenAI might not be able to provide public stocks any time soon:
· Governance structure: The capped-profit system used in OpenAI might not sit well with the conventional public market demands.
· Mission-based focus: The company does not focus on short-term revenue, but seeks long-term safety and ethical development, which may be in opposition to the demands of the public shareholders.
· Regulatory issues: There is a possible rise in regulatory scrutiny of AI that would potentially affect when an IPO of OpenAI might take place or even occur.
OpenAI might not become public until these issues are resolved, which will involve only institutional investors and strategic partners.
Read Article: Seekde: Discover, Learn, and Explore Smarter Online
Wrapping Up
Through such momentum, there is no wonder that investors are waiting anxiously to see any indication of an OpenAI IPO. In case the company decides to become a publicly listed company one day, it would open up a lot of new capital and allow the population to invest in one of the most dominant AI companies in the world.
FAQs
1. Can I buy OpenAI stock now?
No, OpenAI is currently a private company. You cannot buy OpenAI shares on public stock exchanges, but you can gain indirect exposure through companies like Microsoft.
2. Is OpenAI planning an IPO soon?
There is no confirmed timeline for an OpenAI IPO. The company has stated that it is not currently planning to go public due to mission alignment and structural reasons.
3. What’s the best way to invest in AI today?
You can invest in leading AI companies like Microsoft, NVIDIA, and Alphabet, or explore AI-focused ETFs that offer diversified exposure to the sector’s growth.
About the Author
