Foundational Intelligence company that can revolutionize multiple industries such as medicine, finance, science.
Open AI plans to introduce a new device that will be an alternative to the mobile phone that is more AI friendly. This is in collaboration with Jony Ives. This could unlock new TAM.
Bear Case
Sam Altman as a leader is a poor communicator. Gets defensive when asked tough questions, unable to clearly bring across execution plans.
OpenAI Financial Projections
70% of Open AI revenue comes from consumers.
Year
Annual Recurring Revenue (in billions)
2025
$20 ( Nov 2025 )
2030
$200 ( Nov 2025 )
OpenAI Major Strategic Investments
Investor / Partner
Investment Amount ($)
Date Announced
Ownership / Profit Share Details
OpenAI’s Key Commitments / Use of Funds
Microsoft
$13.75 Billion
2019, 2023, & subsequent rounds
Entitled to a share of profits, capped at a certain multiple (e.g., 10x) of its investment. Recent restructure reports give MSFT roughly 27% equity in the for-profit entity.
Exclusive Cloud Provider: OpenAI’s models run exclusively on Microsoft Azure supercomputing infrastructure. Contracted to purchase an incremental $250 Billion of Azure services.
SoftBank (2025 Round)
Up to $40 Billion (Led Series F)
Mar 2025
Investment linked to a $500B valuation and a restructuring plan to convert OpenAI into a Public Benefit Corporation (PBC).
Funds are used for massive compute spending and R&D.
Early Investors (e.g., Khosla, Reid Hoffman)
$194 Million (Initial funding in 2019)
2019
Receive the first profits until their capital is repaid, and a share of subsequent profits until their return is capped at a very high multiple (e.g., 100x).
Funds were used to transition to the capped-profit model and attract talent.
Invest Alpha 