Key insights
- OpenAI is being added to three ARK Invest ETFs (ARKK, ARKW, ARKF), providing retail investors with pre-IPO exposure. This increases accessibility to OpenAI shares before its anticipated IPO. While the stake is relatively small, it signals growing retail demand for AI and innovative tech companies and could drive short-term positive sentiment.
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There's a growing number of ways you could gain exposure to OpenAI, months ahead of its highly anticipated initial public offering.
The AI startup, which is widely expected to make its debut on public markets later this year, is joining three of Cathie Wood's flagship ARK Invest exchange-traded funds, including the ARK Innovation ETF (ARKK), ARK Blockchain & Fintech Innovation ETF (ARKW), and ARK Next Generation Internet ETF (ARKF), according to a release Wednesday.
These funds, which hold a roughly 3% stake in OpenAI, don't require a minimum investment, and are offered through regular brokerages. That could make it easier for ordinary investors to gain exposure to one of the world's most valuable private startups, with an $852 billion valuation after its most recent funding round. Elon Musk's SpaceX, which has filed confidentially to go public according to a Wall Street Journal report earlier today, overtook OpenAI for the title of most valuable after its merger with xAI earlier this year.
ARK's ETFs expand the number of ways ordinary investors can gain exposure to OpenAI, amid growing demand for access to America's hottest private startups.
In a webcast yesterday, OpenAI CFO Sarah Friar said the company hopes to see broadening support from "true retail hands," thanks to the move.
There are a number of other ways you could get exposure to OpenAI ahead of its IPO, though some of them may come with higher hurdles. For example, you could buy them from existing shareholders through third-party platforms such as EquityZen, Hiive, or Forge. However, those platforms may limit participation to accredited investors meeting specific financial or professional requirements.
Another option would be private-market funds, which often have investment minimums and may be limited to accredited investors. A number of firms, including ARK, are also expanding their private offerings with lower barriers to entry to meet growing demand.
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