Hedge fund Tiger looking at $5bn gain on OpenAI
- Related topics: Hedge funds, Venture Capital Trusts (VCTs), OpenAI, Tiger Global
Tiger Global Management is poised to reap an estimated $5bn in paper gains from its early investment in OpenAI, as the artificial intelligence group pursues a funding round that could value it at $1.4tn, according to Bloomberg.
The New York-based investment firm committed $150mn to OpenAI in 2021, when the company was valued at $15.7bn, after co-founder and chief executive Sam Altman approached Tiger Global founder Chase Coleman. The investment has since grown substantially in value as OpenAI has emerged as one of the world's most closely watched AI businesses.
Tiger Global has increased its holding several times since the initial investment, according to people familiar with the matter cited by Bloomberg. OpenAI is now in discussions to raise $30bn at the proposed $1.4tn valuation, potentially delivering one of the most successful investments in Tiger Global's portfolio.
Want the full story? Join Armchair Trader Pro for free today.
Receive valuable updates on the market for institutional investment. Sign up here.
Log In or Sign Up to Armchair Trader ProAlready a member? Log in here:
Not a member? Sign up now or see the membership benefits
By ticking the box above, I declare that I am a self-certified sophisticated investor for the purposes of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005. I confirm that ONE OR MORE of the following applies to me:
- I have been a member of a business angel network or syndicate for at least the last six months; or
- I have made more than one investment in an unlisted company in the past two years; or
- I work, or have worked in the past two years, in a professional capacity in the investment management or trading sector or in the provision of finance for small and medium enterprises; or
- I am currently, or have been in the past two years, a director of a company with an annual turnover of at least £1 million.
I acknowledge that:
- I understand that any investment opportunities discussed on this website may expose me to a significant risk of losing all of the money I invest.
- I am aware that I may lose property or other assets as a result of making these investments.
- I understand that this investment activity is not subject to the same level of regulation or protection as other types of investments.
- I accept that I will not have access to the Financial Ombudsman Service or the Financial Services Compensation Scheme for these investments.
- I am willing and able to bear these risks.
I confirm that the statements above are true and accurate. I agree that The Armchair Trader may rely on this declaration for regulatory purposes.
Further content of this article is not available as it is for Pro members only. Please visit the registration page for Armchair Trader Pro for further details on the benefits of becoming a member.
If you would like to receive more articles like this every week, sign up to our free newsletter – or see more options to suit you.
Stuart Fieldhouse
Stuart Fieldhouse has spent 25 years in journalism and marketing, including as a wealth management editor for the Financial Times group, covering capital markets and international private banking, and as an investment banking correspondent for Euromoney in Hong Kong. He was the founder editor of The Hedge Fund Journal.
Stuart has worked at CMC Markets, supporting the re-launch of its global financial spread betting and CFD trading platforms. He is also the author of two books on trading, published by Financial Times Pearson. Based in The Armchair Trader’s London office, Stuart continues to advise fund managers, private banks, family offices and other financial institutions.
This article does not constitute investment advice. Please do your own research or consult a professional advisor.
