How To Buy OpenAI Stock? Best Buying Guide Of 2023
Ever since ChatGPT exploded into the scene, OpenAI has risen in popularity faster than a viral video or TikTok trend does. The use of ChatGPT and other AI tools has opened a vast world of possibilities for tech industries, making everyone interested in buying OpenAI stock.
But can you buy their shares? Read this post till the end to find out!
What Is OpenAI? Does OpenAI Have Stock?
If you have heard about ChatGPT in recent times, you must have heard about OpenAI – the creator of ChatGPT. These are not any small town business ideas that spring froth from time to time.
OpenAI was formed in 2015, being created by investors like Peter Thiel, CEO Sam Altman, and one of the richest men in the world – Elon Musk. They all invested $1 billion in this project to become a non-profit organization. However, Elom walked away with his shares in 2018.
However, after releasing ChatGPT AI conversational tool, the company soon became one of the most famous AI companies overnight. Now, everyone wants OpenAI stock, especially more so since Microsoft invested $13 billion in OpenAI stock.
However, since it’s a private company with no IPO, you cannot buy OpenAI stock as of now.
What Products Does OpenAI Have?
Before you decide to purchase OpenAI stock, you must always have a look at their products. This is important to do so since companies earth revenue through the sale of these products. If the products do not penetrate the market and bring in good revenue, then they are bad investment choices.
There are many products that can make OpenAI stock a good investment. Moreover, OpenAI stock is in a pre-IPO state now. Therefore, OpenAI stock price can potentially become very profitable in the future, especially if it gets listed on IPOs.
When it comes to OpenAI, all of its products are AI tools. Regarding how OpenAI earns money from these tools, it’s through use-case monetization.
If you use these AI tools to conduct various tasks in bulk, then you have to pay as per the output generated. Therefore, the more tasks you complete using these tools, the more you must pay as well. This makes AI software some of the best process automation software available in the market now.
The primary OpenAI products are:
1. GPT4
GPT4 is an AI tool that allows users to receive feedback on whatever questions they ask. This AI is fitted with machine-learning capabilities that can understand complex instructions from us, solving whatever problem we may face.
One of the most famous AI tools right now is OpenAI ChatGPT, which you might have already heard about. With the use of this tool, users are able to solve complex problems and create technical and creative written content. This tool also powers Microsoft’s Bing AI chatbot.
The use of ChatGPT has exploded this year (2023), garnering millions of users in a few days. However, it has faced criticism from many thinkers saying that it can replace 30% of all IT jobs since this application can do a variety of tasks that can render many professions obsolete.
2. Dall-E
Since ChatGPT provides access to content in written form, Dall-E does the same, except in image format. Using Dall-E, users are able to create AI-generated pictures by simply describing them to the AI, along with providing reference images if possible.
Similar to the use of Chat-GPT affecting the job of many writers and other professionals, the use of Dall-E is expected to make the work of many graphic designers and artists obsolete.
However, the effect of both this and ChatGPT on the professional job sector is not yet understood in detail since both these apps are still in their infancy.
3. Whisper
Whisper is one of the newer OpenAI products that got launched. Whisper is a translation tool that has an expansive database consisting of most of the majorly spoken languages. You can use Whisper by typing in text or uploading recorded speech to be translated into various languages.
4. GitHub Copilot
The life of coders and software developers all over the world was made easier thanks to the GitHub repository. This platform acts as a database where coders can store their codes which they aim to use multiple times throughout various projects.
Now, we have an updated version of it – GitHub Copilot. This is an AI tool that you can feed codes to so that it can use machine learning to learn how to code. This will allow you to get coding suggestions and help from the tool, making coding easier.
OpenAI Financial Standings
Since OpenAI is a private company owned by Microsoft, it does not share any reports about its financial standings. One of the biggest effects of this is that it makes it seemingly impossible to calculate OpenAI stock price.
However, according to several “speculative” reports, some information is available regarding the price of OpenAI stock. This can be based on two reports:
- Fortune Magazine Report: A report by Fortune magazine stated that OpenAI earned approximately $35 million as revenue in 2022.
- Reuter Report: This report states that OpenAI expects to earn $200 million in 2023, which is expected to rise to $1 billion in 2024.
If these reports are to be believed, then you can expect OpenAI stock to grow by 450% in 2023 and by 400% in 2024.
When it comes to the Chat GPT stock price, it can be based on the statement that the company spends approximately $100,000 daily for maintaining its cloud computing infrastructure.
When it comes to OpenAI valuation, then the company will be valued at $29 billion in 2023. This comes from the fact that the company has raised over $12 billion in investments in the last fiscal year.
How To Buy OpenAI Stock (Pre-IPO)?
Since OpenAI stock is not available now since it’s a pre-IPO private company, it’s highly likely that you will be able to buy OpenAI stock. This is most likely because the share market right now follows a flat IPO structure, diminishing interest in pre-IPO shares.
While there are no guarantees, you might be able to buy OpenAI stock from these platforms:
1. Forge Global
Forge Global merged with Sharespost in 2020 to become the biggest marketplace for trading private company shares. Remember that if you make an investment here, you must invest at least $100,000.
2. EquityZen
Sometimes, many employees receive company stocks as compensation for their efforts. By buying these shares, EquityZen sells these shares on the marketplace to investors who qualify as per the “accredited investor” criteria under SEC (Stock Exchange Commission) guidelines.
However, remember that if you make an investment here, you must invest at least $10,000.
3. Nasdaq Private Market
Nasdaq also sells shares of private companies to accredited investors under SEC.
4. EquityBee
EquityBee is a private stock marketplace allowing investors to fund the stock options of employees in return for a part of the proceeds from sales.
Final Verdict: Can You Buy OpenAI Stock?
Unfortunately, you cannot buy OpenAI stock as of now since it’s a private company with no IPO. However, you can only invest millions through private investment channels, which most of you probably do not have access to.
More Resources:
