In a nutshell, you can’t buy OpenAI stock. OpenAI is a private company and its stock is not publicly traded, so you cannot buy OpenAI stock on any public stock exchange, including those in the UK. However, interested investors can watch for potential future public offerings or seek indirect exposure through venture capital funds or entities that may have invested in OpenAI.
Exploring how to buy OpenAI stock in the UK?
This article provides a comprehensive overview of the current status of OpenAI as a private company, outlining the possibilities and limitations for UK investors interested in this innovative AI firm.
We’ll guide you through alternative investment routes and offer tips on staying updated for any future public offerings.
This article was reviewed by Tobi Opeyemi Amure, an investing expert and writer at Investopedia, Investing.com, and Trading.biz.
- OpenAI is a leading private AI company but does not yet have publicly traded shares. The only current way to invest is through major partners like Microsoft.
- Microsoft has invested over $3 billion into OpenAI for exclusive access to models like GPT-3. Buying Microsoft stock provides indirect exposure as it benefits from OpenAI’s innovations.
- Infosys made a $15 million strategic investment into OpenAI in 2019 to capitalise on AI progress for its digital transformation business. Its shares offer another public route to participate in OpenAI’s upside.
- Nvidia creates the GPU chips powering most AI software development, including systems at OpenAI. As a picks-and-shovels supplier to the AI boom, investing in Nvidia grants leveraged exposure.
- AI-focused ETFs provide diversified access to stocks benefiting from the rise of OpenAI and advancements in artificial intelligence overall. They offer balanced risk-managed exposure to AI’s substantial growth potential.
What Is OpenAI?
OpenAI is an artificial intelligence research lab consisting of both the for-profit OpenAI LP and its parent company, the non-profit OpenAI Inc.
Founded in December 2015, its mission is to ensure that artificial general intelligence (AGI)—highly autonomous systems that outperform humans at most economically valuable work—benefits all of humanity.
The organization conducts research in various areas of AI, including deep learning, reinforcement learning, robotics, and natural language processing, and is known for developing advanced AI models like GPT (Generative Pre-trained Transformer) and DALL-E.
OpenAI also focuses on promoting and developing friendly AI in a safe and broadly distributed manner.
Can You Buy OpenAI Stock?
OpenAI stock cannot be purchased by the general public as OpenAI is a private company and has not issued publicly traded shares.
This means that OpenAI’s stock is not available on any public stock exchange.
Investors interested in OpenAI would need to wait for any future public offerings, such as an initial public offering (IPO), or seek indirect investment opportunities, such as through venture capital funds or companies that have invested in OpenAI.
It’s important to keep an eye on financial news for any announcements or changes regarding OpenAI’s status and potential public market plans.
How to Invest in OpenAI Stock Indirectly
You can invest in publicly traded companies that are investing in OpenAI or benefiting from its growth.
Consider these three stocks as options to indirectly participate in the growth of ChatGPT.
Microsoft, a tech giant, invested $1 billion in OpenAI in 2019, marking a significant external startup investment.
Their partnership includes Microsoft providing Azure cloud resources to OpenAI, in exchange for exclusive rights to some OpenAI models like GPT-3.
This deepened over time, with further investments by Microsoft, totaling over $3 billion, valuing OpenAI at $29 billion. Microsoft’s goal is to harness OpenAI’s AI research to advance AI capabilities in its consumer and enterprise products.
Investing in Microsoft offers indirect exposure to OpenAI.
Microsoft is publicly traded, and buying its stock is a way to invest in OpenAI’s potential. Investors can buy Microsoft shares through a brokerage account, considering factors like valuation and market conditions.
Infosys, a tech services company, invested $15 million in OpenAI in 2019.
This investment was part of Infosys’ strategy to partner with startups in emerging technologies. Infosys has used OpenAI’s AI models, like GPT-3, to improve services for clients and develop AI platforms.
Investing in Infosys shares, traded on the New York Stock Exchange (NYSE) and Indian bourses, offers another way to gain indirect exposure to OpenAI.
Nvidia, known for its GPUs, is crucial in AI development, providing hardware for AI algorithms.
Its GPUs are used by companies like Google and Microsoft for machine learning.
Nvidia’s focus on AI hardware has driven its business growth, with data center revenue from AI making up over half of its total sales.
Nvidia’s stock, traded on NASDAQ, offers a way to invest in the AI industry, benefiting from AI trends driven by companies like OpenAI.
OpenAI’s Stance on IPO
Despite intense investor anticipation of an OpenAI IPO, CEO Sam Altman has thrown cold water on expectations of going public anytime soon. The company line reflects a long-term strategic outlook rather than short-term financial motivations.
In interviews, Altman has cited OpenAI’s luxury of adequate funding from backers like Microsoft as key to sticking to a vision beyond quarterly returns. As an AI safety company, OpenAI also favors maintaining control over ethics oversight.
Additionally, conversations around eventual exits for early OpenAI backers, as is standard with mature startups, indicate plans to facilitate liquidity for insiders through secondary sales.
This allows large investors and employees to cash out portions of their equity without an immediate IPO. Altman himself has emphasised staying private to focus on safely building artificial general intelligence.
So while an IPO may eventually transpire when OpenAI reaches later stages of development, the current stance suggests it remains a longer-term possibility rather than an eventuality in the next few years.
Investor Expectations and Speculations
Despite OpenAI’s statements on remaining private, the hype around companies like ChatGPT has fueled investor speculation regarding a potential IPO. AI companies are capturing incredible valuations in both public and private markets.
As one of the category leaders with high visibility after ChatGPT, many observers consider OpenAI a prime IPO candidate based on comps like Databricks in the data analytics sphere.
Rapid user adoption and the clear monetization path for ChatGPT-like technologies further bolsters beliefs that OpenAI could achieve a stellar public valuation.
With Microsoft continuing to pour billions into the partnership, potentially to build a future exit ramp, speculations refuse to die down. Whether funded by Microsoft or organically, projections show OpenAI is on track for tremendous near-term growth.
The investor community likely expects such growth to culminate in a public listing to fully capitalize on market excitement, despite OpenAI signaling otherwise currently.
If user and revenue growth ultimately persuade OpenAI, the IPO could grant extraordinary returns. But until executive stances shift, an offering may not materialize for years.
Alternative Investment Options in AI
Investors should keep an eye on emerging AI companies that are challenging the dominance of big players like Microsoft and Google.
UK-based Graphcore, for instance, is making waves with its dedicated AI chips, surpassing Nvidia in key benchmarks, backed by significant funding.
In the field of robotics automation, companies like UiPath are innovating with AI-based tools, as evidenced by its impressive growth and high valuation.
Consumer-focused AI platforms such as Anthropic and Stability AI have also achieved billion-dollar valuations, driven by popular products like Claude and Stable Diffusion.
Additionally, Toronto’s Waabi Innovation is making strides in autonomous vehicles with a focus on AI safety. These companies represent potential investment opportunities in the expanding AI market.
Sector-Specific AI Investment Opportunities
AI’s transformative impact is evident across various sectors.
In healthcare, AI diagnostic tools from companies like Infermedica and Babylon Health are reshaping care delivery.
The finance sector sees AI-driven innovations in algorithmic trading, fraud detection, and advisory services, with companies like Upstream and Feedzai leading the charge.
In retail, AI is revolutionising customer experiences through innovations like cashier-less stores and personalized recommendations, with companies like True Fit securing significant investment.
Risks in AI Investment
However, investing in AI comes with risks.
The complexity of AI technologies and the sector’s rapid innovation pace makes it challenging to assess long-term viability.
Investors need to conduct thorough due diligence, focusing on management quality and product roadmaps. The AI sector is prone to hype cycles, leading to misalignments between stock prices and commercial viability.
A balanced investment approach, combining mature companies and early-stage startups, is advisable.
Monitoring market dynamics is also crucial in the rapidly evolving AI landscape. An index-tracking approach could offer diversified exposure, encompassing a range of companies benefiting from AI advancements.
ETFs With Exposure to OpenAI & AI
Exchange-traded funds (ETFs) have become popular for investors seeking diversified access to emerging sectors like artificial intelligence.
These passive funds track a collection of stocks related to a specific sector or industry, offering exposure to AI’s growth within a single investment.
ETFs enable diversification across major AI players, including industry giants like Microsoft, Google, Nvidia, and rising startups, without the need to pick individual stocks.
Benefits of AI ETFs include rebalancing to adapt to the changing market and lower management fees compared to active funds.
For those interested in OpenAI’s advancements, AI-focused ETFs are a suitable option, providing a balanced and diversified investment.
Key AI ETFs for Exposure
Certain ETFs, such as the Global X Robotics & Artificial Intelligence ETF (BOTZ), target the AI sector, including key OpenAI ecosystem players like Nvidia.
The Goldman Sachs Future Tech Leaders Equity ETF (GTEK) incorporates cloud platform leaders such as Microsoft and Amazon, directly benefiting from investments in OpenAI.
The ARK Autonomous Technology & Robotics ETF (ARKQ) focuses on AI-driven disruptors in various sectors, with holdings in companies like UiPath, Nvidia, and Microsoft.
For UK investors, the Rize Cybersecurity & Data Privacy UCITS ETF (CYPS) emphasizes AI’s role in cybersecurity, featuring Microsoft and Amazon.
Each ETF offers a different focus on AI’s role in business, covering both established tech firms and emerging innovators like OpenAI.
How to Invest in AI ETFs
Investing in AI ETFs involves:
- Opening a share dealing account with an online broker or investment platform.
- Researching AI ETFs to find the best fit based on holdings, performance, fees, and risk profile.
- Buying ETF shares through trades or setting up regular investments.
- Periodically monitoring the investment, keeping a long-term view as AI evolves.
Investors should diversify their overall portfolios across various sectors and markets, tailored to their risk tolerance.
As AI continues to reshape industries, ETFs provide a cost-effective way to invest in sector leaders and innovators like OpenAI.
Check out our guide on how to invest in AI in the UK.
Can I buy ChatGPT stock?
ChatGPT is owned by OpenAI, which isn’t publicly traded, so you can’t buy stock directly in ChatGPT.
Is OpenAI listed in the stock market?
OpenAI is not listed on the stock market because it is a private company. Therefore, its shares are not available for public trading on any stock exchange. Investors looking to get involved with OpenAI would need to explore indirect investment opportunities or wait for a potential future public offering.
Can I buy ChatGPT shares?
No, you cannot buy ChatGPT shares directly because ChatGPT is developed by OpenAI, which is a private company and its shares are not publicly available. To potentially invest in the technology behind ChatGPT, one would have to look at indirect investment routes, such as companies partnering with or investing in OpenAI.
How to invest in ChatGPT before IPO?
Before an IPO, investing directly in ChatGPT is not possible for most individual investors, as it’s a product of OpenAI, a private company. To invest indirectly, consider stocks of companies that are partners or investors in OpenAI, or venture capital funds that hold a stake in OpenAI. Keep an eye on financial news for any announcements about OpenAI’s IPO or private investment opportunities.