What Company Owns OpenAI? | The Motley Fool (2024)

Have you ever wondered who owns OpenAI? You wouldn't be the first to ask that question, but it's surprisingly difficult to find an answer.

OpenAI started a widespread boom in artificial intelligence (AI) in November 2022. The release of the ChatGPT chatbot, based on a powerful large language model (LLM), set new standards for what AI could do. Before ChatGPT, many saw AI as a mysterious technology trick. After some hands-on experience with ChatGPT, skepticism has evolved into a mix of wonder, fear, and enthusiasm about a computer system's ability to mimic human intelligence in many ways.

What Company Owns OpenAI? | The Motley Fool (1)

Image source: Getty Images.

Related AI tools like the DALL-E image creation system and the Sora video generator put more wind in OpenAI's sails. One year later, OpenAI partners such as Microsoft (MSFT 0.84%) and Nvidia (NVDA -0.03%) had added billions of dollars to their market caps, largely thanks to their involvement with the ChatGPT phenomenon.

However, OpenAI is not a publicly traded company. The driving force behind the AI frenzy that started in 2022 is a very private business managed as a "capped-profit" organization.

So, who owns OpenAI? Well, it's complicated. Let's figure it out together.

OpenAI's goals

OpenAI's ambitious goals in AI research

OpenAI was founded in December 2015. It was a nonprofit company at first, aiming to "advance digital intelligence in the way that is most likely to benefit humanity as a whole, unconstrained by a need to generate financial return."

The absence of financial goals, such as creating value for shareholders, allowed OpenAI to pursue its world-changing goals without distractions.

Who owns it?

Who is the owner of OpenAI?

Early financial backers included venture capital giant Peter Thiel, Tesla (TSLA 0.21%) CEO Elon Musk, India-based technology consulting expert Infosys (OTC:INF.Y), the startup incubator Y Combinator, the cloud-computing pioneers of Amazon (AMZN -0.27%) Web Services (AWS), LinkedIn founder Reid Hoffman, and current CEO Sam Altman. Their first round of funding added up to $1 billion, and OpenAI never made it clear who contributed how much.

The structure changed in 2018 when the nonprofit created a capped-profit unit called OpenAI LP. The new division is allowed to generate a financial profit but with strict limits. The maximum return on the first round of investments was set at 100 times, with lower return caps expected for subsequent investors. Any bottom-line profit in excess of these targets will be reinvested in accelerating the research mission rather than lining the pockets of OpenAI investors.

After this shift, any mention of the bare-bones "OpenAI" name refers to the for-profit arm. The original group, known as OpenAI Nonprofit, still runs the show, setting targets and strategy with a six-member board of directors as of April 2024. The for-profit entity doesn't have a separate board.

Importantly, only a minority of the board members can hold any financial interest in OpenAI and its operations. Employees and investors sign legal agreements to put OpenAI's research mission first, "even at the expense of some or all of their financial stake." And if the organization faces questions about where the interests of investors may conflict with the AI research mission, only board members without financial stakes can vote on what happens next.

Largest shareholders

Who are OpenAI's largest shareholders?

OpenAI, as a private company with a unique "capped-profit" structure, does not disclose detailed breakdowns of its ownership shares. However, some of its major investors are widely known, with a light sprinkling of investment details provided in OpenAI's official blog posts. The exact details of their financial involvement and ownership stakes are not public knowledge.

Individuals

  1. Altman co-founded and co-funded OpenAI but has made it clear that he no longer holds any financial interest in the company.
  2. Greg Brockman was the chief technical officer at digital payments expert Stripe as that company grew from four to 250 employees. He left Stripe to co-found OpenAI, participating in the initial $1 billion funding round. It's unclear whether he kept a stake or let it go.
  3. Hoffman was also part of the first OpenAI funding round. The LinkedIn co-founder holds several board seats, including a Microsoft seat. Again, his financial ties to OpenAI in 2024 are not public knowledge.
  4. Thiel is an experienced venture capitalist and co-founder of household-name technology companies. Like Brockman, Altman, and Hoffman, he took part in OpenAI's original funding. His current stake is not known, but investors of his caliber tend to let their winners run. In other words, if any of the AI expert's initial funding providers still hold on to their investment almost a decade later, it's probably Thiel.

Institutional investors

  1. Microsoft invested $1 billion in OpenAI in 2019 and committed another $10 billion to the AI innovator in 2023. The partnership deepened along the way as Microsoft added OpenAI's tools to its Azure cloud-computing service, to its Bing search engine, and to its Edge browser.
  2. Amazon Web Services was among the original OpenAI funding sources. AWS was quick to set up virtual "gyms" where OpenAI developers and clients could run their AI solutions through a gauntlet of test runs.
  3. Infosys was also on board with the OpenAI journey from day one. Vishal Sikka, the company's CEO at the time, was inspired by Altman's ambition to create artificial general intelligence (AGI) to benefit humanity.
  4. Big-name venture capital funds Tiger Global, Sequoia Capital, Founders Fund, Thrive, K2 Global, and Andreessen Horowitz put their wallets together in April 2023, pouring a total of $300 million into OpenAI. The round was not a technology partnership but a simple financial investment with the purpose of pocketing large gains over time.

Board members

Who is on the board of directors for OpenAI Nonprofit?

The OpenAI Nonprofit organization has shared a few specific details about its operation, including a complete list of active board members. The original OpenAI Nonprofit board was revamped with the introduction of OpenAI LP and then again when Altman returned to OpenAI after a brief pause. The board doubled its size from three members to six in March 2024.

OpenAI does not disclose the board members' financial interests in the company, but a majority of the members must have no ownership of the organization at any given time.

  • Chairman Bret Taylor is a tech industry veteran with C-suite and boardroom stints at giants including Shopify (SHOP 1.6%), Salesforce (CRM 0.47%), Twitter (now X), and Facebook (now Meta Platforms (META -0.19%)).
  • Larry Summers is president emeritus of Harvard University. He also served as the treasury secretary for former President Clinton, director of the National Economic Council for former President Obama, and chief economist of the World Bank.
  • Adam D'Angelo was the chief technical officer of Facebook from 2006-08. He co-founded the question-and-answer forum Quora in 2009 and still serves as the private company's CEO.
  • Dr. Sue Desmond-Hellmann has a long history of top-level leadership in organizations such as the Gates Foundation, Genentech (DNA 0.8%), Procter and Gamble (PG 0.35%), and the University of California, San Francisco (UCSF).
  • Nicole Seligman is a lawyer, a member of several corporate boards, and a former Sony (NASDAQ:SONY) executive.
  • Fidji Simo is the CEO and chair of Instacart (CART 1.85%).

D'Angelo joined the board at the launch of OpenAI LP in March 2019. Summers and Taylor entered the boardroom in November 2023. Simo, Seligman, and Desmond-Hellman were added in early 2024.

Related investing topics

Investing in Tech ETFsHere's how to get tech exposure without the single-stock risk.
Who Owns ChatGPT?Here's how ChatGPT parent OpenAI was created and who owns it.
How to Make Money With AIWhile many are worried that AI might eventually take their jobs, others are looking to harness its power to make money.
How Artificial Intelligence Can Be Used in Your Investing in 2024Learn how artificial intelligence is used in investing and how it can help you be a better investor.

How to invest

How to invest in OpenAI

OpenAI is a private company with no immediate plans to sell stock on the public market. The semi-nonprofit company structure doesn't look tailor-made for supporting a public market entry; co-founder Altman often says that OpenAI will remain private under his watch.

In other words, there is no way to make a direct investment in OpenAI today, unless you're a deep-pocketed venture capitalist or technology giant with partnership plans. Accredited investors with million-dollar assets and the appropriate credentials can use services from Forge Global (FRGE 5.97%) and others to get that ball rolling.

The closest thing to an OpenAI investment for us ordinary retail investors is to buy shares of Microsoft. No one has closer ties to OpenAI than this software legend.

Chip designer Nvidia is another tech giant with exposure to OpenAI and the ChatGPT phenomenon. The company benefits when other businesses build high-powered computer systems to train and operate modern AI engines. Buying Nvidia shares gives you a nuts-and-bolts investment in one of OpenAI's most important infrastructure providers.

You can also go with an exchange-traded fund (ETF) focused on the AI space. This is far from a direct OpenAI bet but is a play on the long-term rise of AI systems and related technologies. Popular options include:

  • Global X Robotics & Artificial Intelligence ETF (BOTZ 0.3%)
  • Global X Artificial Intelligence & Technology ETF (AIQ 0.23%)
  • iShares Robotics and Artificial Intelligence ETF (NYSEMKT:IRBO)
  • WisdomTree Artificial Intelligence and Innovation Fund (WTAI 0.94%)

FAQ

Who owns OpenAI: FAQ

Who are the owners of OpenAI?

OpenAI was originally funded by nine investors, including six individuals and three organizations. Others have joined the OpenAI project in later investment rounds, led by Microsoft's building of a significant ownership stake in the for-profit OpenAI LP unit.

Does OpenAI belong to Microsoft?

No. Microsoft has invested more than $11 billion in OpenAI and holds a significant financial interest in the for-profit organization, but it's less than a controlling majority stake. The fiercely independent OpenAI Nonprofit's board of directors still calls the shots. To make a long story short, the software giant doesn't own OpenAI Nonprofit or OpenAI LP.

Who is controlling OpenAI?

The OpenAI operation you see in public is technically called OpenAI LP. This for-profit business is managed by the OpenAI Nonprofit organization, creating a hybrid between charity and business called a "capped-profit" company. The nonprofit group's six-member board of directors directs OpenAI LP, passing profits down to early investors and the overarching research mission.

Is ChatGPT owned by OpenAI?

Yes, ChatGPT is a large language model chatbot developed and owned by OpenAI. It's one of several powerful AI tools created by the organization. OpenAI has a unique structure where a non-profit organization oversees a for-profit arm, and ChatGPT operates within that profit-generating side of the company.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Anders Bylund has positions in Amazon and Nvidia. The Motley Fool has positions in and recommends Amazon, Meta Platforms, Microsoft, Nvidia, Salesforce, Shopify, and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

What Company Owns OpenAI? | The Motley Fool (2024)

FAQs

What AI company is Motley Fool recommending? ›

The Motley Fool has positions in and recommends Nvidia and Tesla.

What company owns OpenAI? ›

The OpenAI ownership pie is divided between Microsoft (49%), other stakeholders (49%), and the original OpenAI non-profit foundation, which staunchly preserves its autonomy as the leading firm continues to write OpenAI history. Other OpenAI shareholders include a16z, Sequoia, Tigers Global, and Founders Fund.

Can I buy stock in OpenAI? ›

As OpenAI is not publicly traded, purchasing its stock is not available to everyone. To buy the stock of a private companies like OpenAI, you must be an accredited investor. If you meet the accreditation criteria, you can register for Forge's Secondary Marketplace to buy private market stock.

What company owns ChatGPT stock? ›

Can you buy stock in ChatGPT? ChatGPT is owned by OpenAI, which isn't publicly traded, so you can't buy stock directly in ChatGPT. However, you can buy stock in Microsoft, which owns almost half of OpenAI.

What AI company did Warren Buffett invest in? ›

Still, the conglomerate he chairs, Berkshire Hathaway (BRK. A -0.29%) (BRK. B -0.21%), owns shares in at least a couple of companies that have made key moves in AI, including Buffett's longtime favorite business (apart from his own): Apple (AAPL -0.17%).

What are top 3 AI stocks to buy? ›

7 best-performing AI stocks
TickerCompanyPerformance (Year)
NVDANVIDIA Corp139.84%
PRCTProcept BioRobotics Corp125.48%
SOUNSoundHound AI Inc106.17%
ISRGIntuitive Surgical Inc58.05%
4 more rows
6 days ago

Does Microsoft own OpenAI now? ›

Microsoft is entitled to up to 49 percent of the for-profit arm of OpenAI's profits, according to reports. But that's not the same as 49% ownership. That investment does not result in Microsoft owning part of OpenAI, which is now clearer following an update to the OpenAI website and clarification from the company.

Is ChatGPT owned by Microsoft? ›

In January 2023, Microsoft announced that it had acquired a minority stake in OpenAI. However, Microsoft does not own ChatGPT. ChatGPT will continue to be owned and operated by OpenAI. ChatGPT is still under development, but it has the potential to revolutionize the way we interact with computers.

Is OpenAI making money? ›

OpenAI joins Google and Meta in making billions in revenue within a decade of being founded.

Does Elon Musk own shares in OpenAI? ›

Elon Musk was one of the co-founders of OpenAI, but he is no longer affiliated with the organization. OpenAI is an independent research organization that is not owned by any individual or company. It is a non-profit organization that is funded by a variety of sources, including donations and grants.

What is the stock name for OpenAI? ›

Open AI Stock Ticker Symbol

There is no ticker symbol for Open AI stock because it is a private company. Private companies do not have ticker symbols like public companies, they are identified primarily by using the company “street” name or legal name.

What is the price of OpenAI stock today? ›

OpenAI ERC Price Summaries

OpenAI ERC's price today is US$0.00384, with a 24-hour trading volume of $349.

What stock does ChatGPT recommend? ›

Comparison Results
NamePriceVolume
NVDA Nvidia$106.50186.04M
GOOGL Alphabet Class A$149.4317.06M
MSFT Microsoft$412.018.79M
AMZN Amazon$180.2818.86M
5 more rows

Who is the largest shareholder of ChatGPT? ›

ChatGPT is a leading chatbot owned by OpenAI. OpenAI is the world's biggest AI startup. OpenAI was founded in December 2015 by Elon Musk, Sam Altman, Greg Brockman, Ilya Sutskever, John schulman and Wojciech Zaremba.

Who is OpenAI owned by? ›

While our partnership with Microsoft includes a multibillion dollar investment, OpenAI remains an entirely independent company governed by the OpenAI Nonprofit. And, as explained above, AGI is explicitly carved out of all commercial and IP licensing agreements.

What tech stock is Motley Fool recommending? ›

Amazon seems to stumble across market-beating business ideas without even trying. IBM was built for longevity, and will continue to change in order to stay ahead of market challenges. These high-tech innovators are poised to deliver robust stock returns for decades, helping your portfolio build lasting wealth.

Which is the best AI model for stock prediction? ›

Comparison
S. No.Tool NameUses
1EquBotAnalyze, Strategize
2Trade IdeasScan, Identify
3TrendSpiderChart, Analyze
4TradierTrade, Connect
6 more rows
Jun 4, 2024

What are the best AI stocks to buy right now under $10? ›

Top Artificial Intelligence Stocks Under $10:
TickerCompany±%
PRZOParaZero Technologies-0.6%
SOUNSoundHound AI-0.21%
NOTEFiscalNote Holdings3.2%
WISAWiSA Technologies-1.16%
1 more row

What is the best AI penny stock? ›

10 Top AI Penny Stocks To Watch for September 2024
  • BBAI-3.02% ...
  • PHUN-1.52% ...
  • WLDS-2.73% WLDS - NASDAQWearable Devices Ltd. ...
  • LIDR0.00% LIDR - NASDAQAEye Inc. ...
  • AXTI-2.11% AXTI - NYSEAXT Inc. ...
  • NVDA-4.40% NVDA - NYSENVIDIA Corporation. ...
  • GOOG-4.33% GOOG - NYSEAlphabet Inc. ...
  • DJT-1.55% DJT - NYSETrump Media & Technology Group Corp.
Sep 4, 2024

Top Articles
Django vs FastAPI in 2024
About
Jordanbush Only Fans
Farepay Login
Wells Fargo Careers Log In
Top 10: Die besten italienischen Restaurants in Wien - Falstaff
Sissy Hypno Gif
Acts 16 Nkjv
Poplar | Genus, Description, Major Species, & Facts
Wal-Mart 140 Supercenter Products
Weapons Storehouse Nyt Crossword
Kostenlose Games: Die besten Free to play Spiele 2024 - Update mit einem legendären Shooter
Space Engineers Projector Orientation
Belle Delphine Boobs
Craigslist List Albuquerque: Your Ultimate Guide to Buying, Selling, and Finding Everything - First Republic Craigslist
Telegram Scat
Beverage Lyons Funeral Home Obituaries
Xfinity Cup Race Today
Craigs List Jonesboro Ar
Busted Mugshots Paducah Ky
Mynahealthcare Login
Tinyzonehd
Tracking every 2024 Trade Deadline deal
What is Software Defined Networking (SDN)? - GeeksforGeeks
Winterset Rants And Raves
Nurofen 400mg Tabletten (24 stuks) | De Online Drogist
Poe T4 Aisling
Dtlr On 87Th Cottage Grove
Otis Offender Michigan
Craigslist Free Puppy
Leland Nc Craigslist
The Wichita Beacon from Wichita, Kansas
Sedano's Supermarkets Expands to Orlando - Sedano's Supermarkets
The Pretty Kitty Tanglewood
De beste uitvaartdiensten die goede rituele diensten aanbieden voor de laatste rituelen
1-800-308-1977
Dr. John Mathews Jr., MD – Fairfax, VA | Internal Medicine on Doximity
Robeson County Mugshots 2022
Jail View Sumter
B.C. lightkeepers' jobs in jeopardy as coast guard plans to automate 2 stations
Citibank Branch Locations In Orlando Florida
Atom Tickets – Buy Movie Tickets, Invite Friends, Skip Lines
Foxxequeen
Deepwoken: How To Unlock All Fighting Styles Guide - Item Level Gaming
Juiced Banned Ad
Conan Exiles Tiger Cub Best Food
Chubbs Canton Il
Actress Zazie Crossword Clue
Dineren en overnachten in Boutique Hotel The Church in Arnhem - Priya Loves Food & Travel
Assignation en paiement ou injonction de payer ?
Sams La Habra Gas Price
Congressional hopeful Aisha Mills sees district as an economical model
Latest Posts
Article information

Author: Virgilio Hermann JD

Last Updated:

Views: 5904

Rating: 4 / 5 (61 voted)

Reviews: 84% of readers found this page helpful

Author information

Name: Virgilio Hermann JD

Birthday: 1997-12-21

Address: 6946 Schoen Cove, Sipesshire, MO 55944

Phone: +3763365785260

Job: Accounting Engineer

Hobby: Web surfing, Rafting, Dowsing, Stand-up comedy, Ghost hunting, Swimming, Amateur radio

Introduction: My name is Virgilio Hermann JD, I am a fine, gifted, beautiful, encouraging, kind, talented, zealous person who loves writing and wants to share my knowledge and understanding with you.