OpenAI: The center of the AI revolution
The most important company in the world is in a race against time to became a vertically integrated AI titan, with hundreds of billions of spending and ripple effects throughout the AI value chain
Welcome to the 41th investment case (but the first on a company that is not yet listed, meaning you cannot invest in its stock) and 18th AI & data center idea on Crack the Market (and the most comprehensive OpenAI deep dive you will find online)! Join me as I dissect the company at the center of the AI ecosystem and which kickstarted the AI supercycle with the release of ChatGPT in 2022, and which is now running ahead to dominate the new AI world thanks to massive investments in compute and the most important company for the monetization of AI and therefore the sustainability of the most important investment wave in history.
Before we start, to understand the broader context of the historical AI Infrastructure buildout, here is some recommending reading:
To understand the structure of the ecosystem, read my primer on the AI data center buildout:
Understand how to invest in the $3-4tn AI Supercycle, a once in a lifetime investment opportunity:
Deep dive into Oracle, OpenAI’s key AI cloud/infrastructure partner:
How Oracle’s recent earnings changed everything, shifting the focus from AI training to AI inference, massively expanding the AI TAM:
Discover the most important company in the world, powering the future of AI, fuelling the entire AI infrastructure ecosystem and stock market and transforming the world.
In this article I go through:
OpenAI’s founding, evolution, core AI technologies, and market position, including history and ChatGPT launch.
OpenAI’s AI innovation, LLMs, generative AI, agentic AI, and its role in the AI infrastructure ecosystem.
Key factors fuelling OpenAI’s rapid growth, partnerships (Microsoft, Oracle, Nvidia), product roadmap, and competitive landscape.
Analysis of funding needs, cash burn, infrastructure spending, competitors, and regulatory challenges facing OpenAI.
Future projections, governance structure updates, capital allocation, and OpenAI’s valuation trajectory towards an IPO.
