OpenAl would be a Global Top 40 company if it went public

OpenAI, the company behind one of the most popular artificial intelligence (AI) platforms, ChatGPT, embarked on a journey of pivoting away from a non-profit focused on AI safety to a for-profit company in the second half of 2024.

- Andreja Stojanovic

Finbold research found that OpenAI's transition contributed to a substantial valuation increase, positioning it as the world's 39th largest company if it were to go public via an initial public offering (IPO).

Specifically, SoftBank (TYO: 9984) is preparing to invest USD 40 billion in OpenAI at a pre-money valuation of USD 260 billion, according to a February 7 report.

The new estimate means that OpenAI surged 65.61 percent in value in just over four months as an October 2024 funding round - spearheaded by Fidelity, Thrive Capital, Microsoft (NASDAQ: MSFT), and Nvidia (NASDAQ: NVDA) - was undertaken at a USD 157 billion valuation.

OpenAI overtakes Palantir and Alibaba in terms of valuation

Furthermore, while OpenAI was at the 100th spot among the world's biggest companies and just behind Siemens (ETR: SIE) and just ahead of Contemporary Amperex Technology (SHE: 300750), the new estimate places it far ahead of these firms.

At USD 260 billion, the Microsoft and SoftBank-backed AI firm would find itself between Wells Fargo (NYSE: WFC) valued at USD 265.31 billion – and Samsung (KRX: 005930) – valued at USD 254.95 billion – if it went public.