A top technology investor is eyeing the possibility of another multitrillion-dollar AI firm, one co-founded by Elon Musk, joining the market’s elite.
In a new interview with WEALTHTRACK, Baron Opportunity Fund portfolio manager Michael Lippert says OpenAI is just getting started and could easily have billions of users in the coming years.
“I mean, 800 million users. It’s the fastest adoption in history. Before that was Instagram, then TikTok, and now it’s OpenAI. And I think pretty soon we’re going to have a billion weekly active users on that. But remember, Meta, Facebook and Instagram, they have three billion people on their platform. So that’s where OpenAI is going for.”
Looking ahead, Lippert predicts that OpenAI’s valuation of about $500 billion will skyrocket by 700% if the AI unicorn begins to monetize its massive user base.
“They’ll do roughly $15 billion in revenue this year. Assume it doubles next year. So it’s 30 against $500 billion. That’s a very healthy multiple.
But I would ask people when you think about OpenAI, and today, of course, we have the Mag 7 or we have Batman. Imagine what the acronym or the name is going to be in five years, and what’s the most likely company to be in that group in five years? I bet most of us would choose OpenAI to be part of that group.
So yeah, it could be $500 billion today. But Nvidia is a $4 trillion company. I think going higher. It’s not going to be $8 trillion tomorrow. But could OpenAI one day be a $4 or $5 trillion company? Could be, sure. They have to execute. They have to continue to remain dominant. They have to go from us using them for free information to us using them for all sorts of monetizable applications, whether it’s commerce or whether it’s business uses. But they could be.”
Elon Musk co-founded OpenAI as a non-profit organization in December 2015 alongside Sam Altman, Greg Brockman, Ilya Sutskever and others. Musk later left the board in 2018, citing potential conflicts with Tesla’s own AI ambitions.
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