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You can't directly buy OpenAI shares from the stock market but there are other ways to invest.
For instance, you can buy shares in companies that have invested in OpenAI, invest in funds that hold OpenAI private equity, or — if you have the substantial funds for it — you can buy private OpenAI equity.
OpenAI was founded in 2015 by a group of mostly computer scientists, with Sam Altman and Elon Musk serving as Chairmen. The startup shot to fame by 2023 with the launch of ChatGPT, an AI-powered advanced language model.
Details about the exact ownership structure of OpenAI is not available because it's a private company and previously a nonprofit. This means these details do not have to be publicly disclosed. However the company has recently been valued at between US$157 billion.
OpenAI is a private company, which means its shares are not available to the public. That makes it trickier for investors to get a slice of the cake, but not impossible. Here are your options if you want to invest in OpenAI (ChatGPT).
1. Buy shares in a public company that has exposure to OpenAI
While you can't buy shares in OpenAI, you can buy shares in publicly listed companies that have exposure to OpenAI or ChatGPT.
Probably the most direct way to invest in OpenAI is to buy shares in Microsoft (MSFT). Microsoft has formed a partnership with OpenAI and has the largest known stake in the company to date, though reports suggest SoftBank may soon surpass Microsoft.
Jump down to our list of stocks that have exposure to OpenAI or compare trading platforms to start trading right away.
2. Buy private OpenAI stock: You can buy stock in American private companies through secondary marketplaces if you're registered as an accredited investor. To qualify as a registered investor, you need to have a net worth of US$1 million and have earned an income of at least US$200,000 in the last financial year.
Once registered, you can purchase OpenAI shares through a stock broker or a private equity trading platform such as UpMarket, Hiive or Forge Global.
3. Buy OpenAI stock through an investment fund: A number of funds have invested in OpenAI. Some of these are even listed on the stock market as ETFs.
Here are some ETFs and hedge funds that have bought OpenAI stock:
For more ETFs investing in artificial intelligence, check out our list of AI ETFs on the ASX.
OpenAI is not publicly listed on any stock exchange and has not announced any plans to do so, but several recent developments have fuelled speculation of an IPO.
In late 2024, OpenAI announced it would be transitioning from a partial for-profit model to a Public Benefit Corporation. This new structure removes some of the barriers to investing, making it easier to attract funding and (potentially) prepare for any future IPO.
In June 2024, the company also announced new CFO Sarah Friar, who has experience guiding both Square (now Block) and Nextdoor through IPOs as CEO and CFO.
OpenAI is currently valued at US$157 billion (as of October 2024) though going public could significantly increase its valuation.
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Several companies and prominent figures are reported to have invested in OpenAI since its early beginnings in 2015, including Amazon, Elon Musk, Jessica Livingston and Microsoft. But as OpenAI is a private company, it's not clear whether all of these companies still have a stake in the AI firm.
Other companies that could benefit from the rise of ChatGPT and related technologies are those building their own AI platforms or partnering with OpenAI to integrate technologies.
Microsoft has the largest known stake in OpenAI, having invested US$13 billion since 2019. Microsoft is also the exclusive provider of computing power for OpenAI's research, products, and programming interfaces for developers. GPT-3 is licensed exclusively to Microsoft.
In turn Microsoft has integrated ChatGPT technology into its Bing search engine in the form of Bing Chat as well as its Microsoft 365 Azure cloud and other software applications.
Softbank is a major collaborator with OpenAI, partnering on AI projects including the Stargate Project — an initiative to boost AI infrastructure in the US — and SB OpenAI Japan – a joint venture to offer AI services to Japanese firms.
Softbank has to date invested $22 billion in these ventures and there are reports of Softbank leading a substantial funding round in OpenAI that would usurp Microsoft as the largest stakeholder.
Amazon is thought to have invested in OpenAI in the early days but the arrangement is not clear.
Today Amazon is working on several of its own AI projects including application technologies that directly rival ChatGPT technology. AI projects include its Alexa voice assistant and AI tools and services available through its Amazon Web Services.
NVIDIA's graphic processing units (GPUs) have become foundational hardware in AI training, including by ChatGPT. In fact, Microsoft has said the supercomputer used to build ChatGBT used thousands of NVIDA GPUs to power it and rival companies are following suit.
Although they started in the gaming sector, their AI-specific hardware and software platforms like CUDA have made them central to the AI boom.
In October 2024, Nvidia invested US$100 million during a funding round that raised $6.6 billion for OpenAI.
As NVIDIA's main rival, AMD has positioned itself well in the AI and machine learning hardware space. Like NVIDIA, it produces GPUs that are applicable in AI processing.
Although NVIDIA's GPUs are the top choice by companies building AI applications, AMD's competitor chips may prove themselves in the coming years as demand for GPUs increases.
Google's parent company invests heavily in AI. DeepMind, a subsidiary of Alphabet, is at the forefront of AI research. Google also utilises AI in its search algorithms, advertising, Google Assistant, and cloud services.
In early 2023, Google announced the launch of its own AI chatbot Bard, a direct rival to ChatGPT.
Often referred to as the "Google of China," Baidu has invested heavily in AI research and applications, including its Apollo autonomous driving platform and DuerOS voice assistant platform.
Baidu launched its own AI chat style service called Ernie in March 2023 - the first Chinese company to release a direct rival to ChatGPT.
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