OpenAI has filed a confidential draft S-1 form with the Securities and Exchange Commission (SEC) on June 8, 2023, as it prepares for an initial public offering (IPO). The AI company, currently valued at $852 billion, may delay its market debut until 2027 due to recent market volatility, particularly following the IPO of SpaceX (NASDAQ: SPCX).
Microsoft is a major investor in OpenAI, having invested $13 billion between 2019 and 2023, giving it a 27% stake valued at approximately $230 billion. Additionally, Amazon has invested $15 billion in preferred stock and has committed another $35 billion through its AWS division, while Nvidia has contributed $30 billion as part of a collaborative effort. Other significant investors include Japan’s Softbank, which holds a 13% stake worth $45 billion in unrealized gains.
For those seeking exposure to OpenAI before its IPO, options include tech stocks like Microsoft and mutual funds such as the Ark Venture Fund (NASDAQMUTFUND: ARKVX) and Destiny 100 (NYSE: DXYZ), which allocate 8.5% and 5.8% of their portfolios to OpenAI, respectively. However, both funds come with management fees and regulations.
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