The race to capitalize on the artificial intelligence boom could soon get even more exciting. With OpenAI confidentially filing for an initial public offering, investors are already looking for the best ways to profit from what could become one of the largest and most anticipated AI IPOs in history. While the company has yet to announce a timeline for its market debut, growing excitement around OpenAI, Anthropic, and SpaceX is fueling renewed interest in IPO-focused stocks and exchange-traded funds.
As noted by CNN, “OpenAI was last valued at $852 billion after raising $122 billion in March, but it’s faced pressure to demonstrate it can generate the cash to match that valuation.”
OpenAI’s IPO plans come just days before SpaceX is expected to launch its own public offering in a deal that could raise a record $86 billion and value Elon Musk’s aerospace and AI empire at roughly $1.78 trillion. Meanwhile, Anthropic, the developer of the Claude chatbot, disclosed last week that it had also confidentially filed for an IPO. In its most recent private funding round, Anthropic reached a valuation of $965 billion – surpassing OpenAI’s valuation for the first time – as the company continued to post rapid revenue growth.
While waiting for a direct opportunity to buy into this potential IPO is one approach, investors are turning to stocks and ETFs such as:
The Renaissance IPO ETF
With an expense ratio of 0.6%, the Renaissance IPO ETF (NYSEARCA: IPO) provides “investors with the largest, most liquid US-listed newly public company stocks in one security, reducing the risk of single-stock ownership while avoiding overlap with major core indices for optimal diversification across markets and time,” as noted by Renaissance Capital.
Since November 2023, the ETF has rallied from a low of about $30 to its current price of $55. From here, we’d eventually like to see the ETF rally back to $60 a share.
Sincerely,
Ian Cooper
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