Want to Invest in OpenAI Before Its Blockbuster IPO? Here’s How to Do It.
Artificial intelligence (AI) chatbot ChatGPT amassed 100 million active users just two months after launching in November 2022, becoming the fastest software application to ever achieve that milestone. Its creator, OpenAI, is now valued at $852 billion, making it one of the largest private companies in the entire world. OpenAI is reportedly exploring the possibility of an initial public offering (IPO), which would see its shares trading on the public markets sometime before the end of 2026. This will give everyday investors an opportunity to own a slice of the company, whereas only institutional funds and wealthy individuals had the opportunity to buy into this growth story previously. Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue » However, there is one way to indirectly invest in OpenAI right now. Ark Investment Management, which is run by seasoned technology investor Cathie Wood, invested $240 million in OpenAI during March. It spread the position across three of its exchange-traded funds (ETFs), which investors can buy through any major investing platform. Here’s how to get involved. Image source: Getty Images. Three technology-focused funds The three Ark ETFs with exposure to OpenAI are: Ark Innovation ETF (NYSEMKT: ARKK) Ark Next Generation Internet ETF (NYSEMKT: ARKW) Ark Blockchain and Fintech Innovation ETF (NYSEMKT: ARKF) OpenAI represents just under 3% of the portfolio in each of the ETFs, which doesn’t sound like a high degree of exposure, but these funds are typically designed to be diversified even when they have a narrow mandate. Choosing which ETF to buy is a matter of investor preference, based on what their existing portfolios might be lacking. The Ark Innovation ETF is Ark’s flagship fund. It invests in areas of the technology industry like autonomous mobility, intelligent devices, neural networks, precision therapies, and more. It holds 42 different stocks, and its top five positions are Tesla, CRISPR Therapeutics, Tempus AI, Shopify, and Coinbase Global. The Ark Next Generation Internet ETF has a more narrow focus on areas like autonomous mobility, intelligent devices, cloud computing, and neural networks. Its top five holdings are Tesla, Advanced Micro Devices, Ark Bitcoin ETF, Shopify, and Robinhood Markets. Finally, as its name suggests, the Ark Blockchain and Fintech ETF focuses specifically on digital wallet providers, cryptocurrencies, and financial technology companies. Its top five holdings are Shopify, Ark Bitcoin ETF, Circle Internet Group, Coinbase Global, and Block.