In today’s accessible investment world, the stock market stands as a potentially lucrative option for many. This guide provides essential information, and a step-by-step process to buy OpenAI stocks, one of the most talked about stocks recently.
Summary
OpenAI is a privately held artificial intelligence research company, best known for innovations like ChatGPT. As OpenAI is not a public company, investors cannot directly purchase OpenAI stocks. However, it is possible to gain exposure to OpenAI and the AI industry through related public companies and ETFs.
This guide recommends using Fidelity as a reputable brokerage platform to buy AI stocks and funds. It also outlines key steps, including researching AI companies, funding a brokerage account, determining position sizes, placing trades, and monitoring investments. Ongoing assessment and adjustment based on market conditions is vital when investing in a dynamic sector like AI.
OpenAI
Founded in 2015, OpenAI is an AI research laboratory focused on developing advanced artificial intelligence systems and making the benefits of AI widely available. Well-known OpenAI projects include the GPT-3 language model, the DALL-E image generator, and the ChatGPT conversational agent.
OpenAI operates as a hybrid corporate structure encompassing both non-profit and for-profit entities. The company has received billions in funding from high-profile investors like Microsoft and does not currently plan to pursue an IPO.
How to Buy OpenAI Stocks: Step-by-Step Guide
Step 1: Research AI Companies
Conduct thorough research on companies involved in AI development like OpenAI partners Microsoft and NVIDIA. Analyze financials, products and services, leadership teams, and recent news.
Step 2: Open a Brokerage Account
Open an investment account with a leading brokerage like Fidelity to access the stock market. Fidelity offers $0 trades, robust research, and excellent customer service.
Step 3: Fund Your Account
Deposit funds into your Fidelity brokerage account that can be used to purchase stocks and ETFs. Initial minimum deposits start at $0.
Step 4: Decide on Position Sizes
Based on your strategy and risk tolerance, determine appropriate position sizes for your AI investments. Diversify with small allocations to multiple stocks.
Step 5: Execute Trades
Use Fidelity’s intuitive online platform or mobile app to place orders for shares of AI companies and ETFs. Carefully review details before confirming.
Step 6: Monitor Performance
Regularly track the performance of your AI investments. Stay up-to-date on financial reports, product launches, partnerships, and other news.
Step 7: Adjust Your Portfolio
As needed, rebalance your investments over time based on performance, news, or changes in your strategy. Consider tax implications before selling positions.
Fees for Investing in AI Stocks
Fidelity offers $0 stock and ETF trades, allowing you to maximize returns. Other potential fees include annual account fees unless meeting minimum balances of $25,000+.
Taxes on AI Stock Investments
Investment income and short-term capital gains under one year are taxed as ordinary income. Long-term capital gains on assets held over one year benefit from preferential tax rates.
Conclusion
Investing in innovative areas like AI carries potential for significant growth over time but also higher volatility. This guide has provided essential steps around researching AI companies, opening a brokerage account, executing trades, monitoring investments, and making adjustments when necessary. Maintaining a long-term view and diversified portfolio can help navigate the ups and downs when investing in AI stocks.
FAQs
Can I buy shares in OpenAI?
No, OpenAI is currently a private company so you cannot directly buy OpenAI shares. The company has not yet had an IPO to make their stock publicly tradable.
How can I buy AI stock?
While you cannot buy OpenAI stock, you can purchase publicly traded stocks of companies involved in AI research and development like Microsoft, Nvidia, and IBM. You can also invest in AI via tech-focused ETFs from providers like Global X and ARK Invest.
How do I buy stock in GPT?
There is no “GPT stock” to directly invest in. GPT-3 is an AI system developed by private company OpenAI. But you can buy stock in OpenAI partners like Microsoft and chipmakers Nvidia and AMD that power advanced AI systems.
