Topline<\/p>\n
Robinhood\u2019s venture fund closed a $75 million investment in OpenAI, the company announced Wednesday, presenting an opportunity for traders to invest in the AI giant for the first time ahead of an anticipated stock debut. <\/p>\n
A recent funding round valued OpenAI at more than $850 billion. <\/p>\n
NurPhoto via Getty ImagesKey Facts<\/p>\n
The Robinhood Ventures Fund I closed the investment into OpenAI\u2014which has yet to go public\u2014on April 17, Robinhood said<\/a> Wednesday, adding that private markets have been \u201cout of reach\u201d for everyday investors \u201cfor too long.\u201d<\/p>\n While this doesn\u2019t allow direct investment in OpenAI\u2019s stock, Robinhood\u2019s investment lets traders buy into a venture fund with indirect exposure to its value.<\/p>\n Retail traders have access to OpenAI shares through other funds, like famed investor Cathie Wood\u2019s ARK Invest, though investors also have some exposure to OpenAI through Microsoft, which holds a major revenue-sharing agreement<\/a> with OpenAI.<\/p>\n Shares of the venture fund, which trades on the New York Stock Exchange under the RVI ticker, rose 8% as of Wednesday morning.<\/p>\n Big Number<\/p>\n $852 billion. That was OpenAI\u2019s post-money valuation after a $122 billion funding round in March, the company announced, after another $110 billion funding round a month earlier. Robinhood\u2019s investment is small compared to OpenAI\u2019s larger funding rounds, representing less than 1% of OpenAI\u2019s latest valuation.<\/p>\n Surprising Fact<\/p>\n Last year, Robinhood offered tokenized shares of OpenAI and SpaceX to its users in Europe, briefly fueling the company\u2019s stock to an all-time high. OpenAI condemned the move, however, arguing<\/a> the tokens did not represent equity in the company and that OpenAI did not partner with Robinhood. \u201cAny transfer of OpenAI equity requires our approval,\u201d the company said, adding it had not approved any transfers. <\/p>\n Key Background<\/p>\n Demand for retail investment in OpenAI has surged in recent years, dominating markets. An expected IPO from OpenAI is among the most anticipated debuts, and chief financial officer Sarah Friar said<\/a> earlier this month that the company saw \u201creally strong demand\u201d from individual investors. A public offering is expected as early as later this year, CNBC reported<\/a>, as OpenAI plans to spend some $600 billion over the next five years developing semiconductors and data centers. <\/p>\n