How to Buy ChatGPT Stock
ChatGPT revolutionized the market with its AI chatbot. But is there a way to invest in them? Continue reading.
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Shortcut: Want to invest in pre-IPO companies like ChatGPT and other top startups? EquityZen offers a chance for accredited investors to invest in private companies before they're public. Join now to unlock access.
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There's no denying that ChatGPT is a leading player in the AI industry.
As an investor, you can be a part of ChatGPT's success. You can start by investing in its major investors or through a secondary market platform. Take a closer look at how you can invest through these options.
Can You Buy ChatGPT Stock?
To be clear, ChatGPT is an AI chatbot, not the company itself. Technically, it doesn't have its own stock. Its creator, OpenAI, isn't publicly traded, meaning you can't buy stock directly on a public stock exchange.
However, you have other options if you want to invest in ChatGPT:
- Buy shares on secondary platforms
Using a secondary platform such as EquityZen, you can buy shares of OpenAI directly from its existing shareholders, even if it's a private company.EquityZen minimum investment: starts at $10,000
Direct share acquisition: at least $150,000 - Invest in Microsoft (MSFT)
Microsoft is OpenAI's strategic partner and major investor. By buying Microsoft (MSFT) shares, you are also indirectly investing in OpenAI.
Next, learn in detail how these investment options work.
Yes. You can invest in OpenAI, the company that built ChatGPT, through direct or indirect methods. However, OpenAI (ChatGPT) is a privately held company, so its stock is typically limited to specific investors like accredited investors, venture capitalists, and institutions.
How to Buy ChatGPT Stock Before the IPO Date
If you're looking to invest in OpenAI (ChatGPT) before the IPO, platforms like EquityZen let accredited investors access private companies before they go public. Here's how to get started:
1. Sign up with EquityZen
2. Search for OpenAI (ChatGPT)
3. Invest via a fund that owns shares of OpenAI (ChatGPT)
Register now to unlock exclusive access to hundreds of high-growth startups, like Stripe, SpaceX, Reddit, and OpenAI.
If it's not available yet, users will be notified once it is.
Invest in Private Companies
- Invest in pre-IPO companies through an EquityZen fund.
- $10,000 minimum investment
- Available to accredited investors only
According to the Securities and Exchange Commission (SEC), an accredited investor is anyone who:[1]
- Net worth over $1 million, excluding primary residence (individually or with spouse or partner)
- Income over $200,000 (individually) or $300,000 (with spouse or partner) in each of the prior two years, and reasonably expects the same for the current year.
How to Indirectly Invest in ChatGPT Stock
To indirectly invest in OpenAI (ChatGPT) stock, consider purchasing shares of its major investor, Microsoft (MSFT).
You can buy Microsoft shares through any brokerage or trading app. No special qualifications are needed. Here's how to do it:
- Create your account on the website or app.
- Add funds (some brokers have a $0 minimum deposit)
- Search for Microsoft (ticker symbol MSFT).
- Enter the desired number of shares or dollar amount.
- Place the order.
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Why Invest in ChatGPT Stock?
Here's why it may be a good idea to invest in OpenAI, the creator of ChatGPT:
- Market Leader in AI
There is no doubt that ChatGPT is a leading player in the AI industry with its generative AI. Despite only starting recently, it's already estimated to have an $80 billion valuation, which is impressive compared to its close competitors. - Usability
As of August 2024, ChatGPT already has over 200 million weekly users. In investing, having a very strong customer base is one factor to consider when deciding whether or not the stock is worth it.[2] - Promising Earnings Growth
According to some reports, ChatGPT's revenue has steadily risen in the past quarters. Last December 2023, they reached the $2 billion revenue milestone.[3]With various profit sources such as subscriptions, API fees, and strategic partnerships, OpenAI has strong sales growth potential.
OpenAI (ChatGPT) isn't publicly traded yet, so there's no real-time data about its stock price. It also doesn't have a ticker symbol yet. However, secondary platforms such as Hiive feature a stock price showing how much OpenAI (ChatGPT) private stock is currently trading for in the secondary market.
What is ChatGPT's Valuation?
OpenAI (ChatGPT)'s valuation was estimated at around $86 billion when it made a tender offer in February 2024.[4]
Now, there are talks that for the next funding round, OpenAI is estimated to hit $150 billion, making them worth more than 88% of S&P 500 firms.[5]
OpenAI's unique capped-profit (a hybrid of non-profit and for-profit) structure lets investors participate in its capital growth. However, profit is capped at 100x. Beyond that, profits will be returned to the company for future growth.[6]
Yes, but OpenAI isn't publicly traded, so you must meet certain investor requirements and use a secondary platform such as EquityZen, Hiive, or Forge Global. Access to private stock is typically limited to specific investors like accredited investors, venture capitalists, and institutions.
What are the Alternatives to ChatGPT Stock
In the AI Industry, many companies are creating products similar to ChatGPT. Here are some of the best AI stocks to buy aside from OpenAI (ChatGPT) and Microsoft (MSFT):
- Alphabet Inc. (NASDAQ: GOOGL)
Google's parent company, Alphabet Inc., invests significant resources in AI research and development.Google's AI ventures include programs such as Google DeepMind, which strives to progress in AI technology and its practical applications.
- Meta Platforms, Inc. (NASDAQ: META)
Meta is the parent company of Facebook, Instagram, and WhatsApp. Facebook rebranded to Meta in 2021, places a significant emphasis on AI, and has established its own AI research division, Meta AI (formerly known as Facebook AI Research or FAIR).The company utilizes AI in various aspects, including content moderation, ad targeting, and natural language processing.
- 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 improves customer experiences and streamlines operations. - NVIDIA (NASDAQ: NVDA)
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. - IBM (NYSE: IBM)
IBM is a big player in the tech world and has a history of AI research and development. Their Watson AI program can handle questions and give responses that sound just like a person. As of November 2024, IBM's total market capitalization reached $198 billion, making it a major player in the AI stock scene.[7]
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ChatGPT is owned by OpenAI. It was founded by Elon Musk, Sam Altman, Greg Brockman, Ilya Sutskever, Wojciech Zaremba, and John Schulman in December 2015. Currently, Sam Altman is serving as the CEO, and Greg Brockman is the President.
Bottom Line
OpenAI (ChatGPT) stock is not publicly traded, but you can invest in it directly through secondary platforms like EquityZen. You can also indirectly invest by buying shares of its major investor, Microsoft (MSFT).
Keep in mind that pre-IPO investments carry risks. So, do your research and consider your financial goals and risk tolerance before making any investment decisions.
References
- ^ SEC. Accredited Investor, Retrieved 01/02/2024
- ^ Reuters. OpenAI says ChatGPT's weekly users have grown to 200 million, Retrieved 10/05/2024
- ^ Reuters. OpenAI hits $2 bln revenue milestone - FT, Retrieved 10/05/2024
- ^ Bloomberg. OpenAI Deal Lets Employees Sell Shares at $86 Billion Valuation, Retrieved 10/05/2024
- ^ Business Insider. OpenAI is reportedly raising at a $150 billion valuation — making it worth more than 88% of S&P 500 firms, Retrieved 10/05/2024
- ^ OpenAI. OpenAI LP, Retrieved 10/05/2024
- ^ Nasdaq. International Business Machines Corporation Common Stock (IBM), Retrieved 11/07/2024
Stella Magay is a research analyst at CreditDonkey, a personal finance comparison and reviews website. Write to Stella Magay at stella.magay@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
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