Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - JPMorgan has issued a comprehensive research note on OpenAI, revealing the private AI company reached approximately $10 billion in annual recurring revenue in the first half of 2025, representing an 82% increase. For context, InvestingPro data shows that leading public tech companies typically see revenue growth rates between 8-17%, making OpenAI’s growth particularly remarkable.
The research note positions OpenAI as the third most valuable private company globally, valued at $300 billion following its March fundraising round. JPMorgan highlights that OpenAI has attracted over $315 billion in AI/ML startup investments since 2023, with the company receiving 18% of that total. To track the impact of AI investments on public tech companies, InvestingPro offers comprehensive financial analysis of over 1,400 tech stocks, including detailed AI exposure metrics and growth indicators.
ChatGPT, OpenAI’s flagship product released in November 2022, has grown to over 800 million users, making it the second fastest-growing digital application in history. The service reached 500 million weekly active users in March, with consumer subscriptions accounting for approximately 75% of the company’s revenue.
JPMorgan identifies several challenges facing OpenAI, including increasing model commoditization, high inference costs, and erosion in model pricing power. The firm notes that OpenAI’s once-flagship GPT-4 now ranks 95th in LM Arena, while competitors like Google’s Gemini 2.5 and China’s DeepSeek-R1 have emerged as leading cost-effective alternatives.
The research note also addresses OpenAI’s significant spending, with $63 billion raised for AI infrastructure and talent, while profitability is not expected until 2029. Public estimates value the company at approximately 27 times its estimated 2025 revenue, compared to an average of 9 times for major tech companies. For investors interested in identifying fairly valued AI and tech opportunities, InvestingPro provides detailed valuation metrics and Fair Value estimates across the technology sector, helping investors make more informed decisions in this rapidly evolving market.
In other recent news, Salesforce has been the subject of several analyst evaluations and company developments. Citizens analyst Patrick Walravens reiterated a Market Outperform rating for Salesforce with a price target of $430. This decision followed a discussion with Richard Socher, an influential AI researcher and former Salesforce executive, highlighting the company’s position in the AI landscape. Similarly, JMP Securities maintained its Market Outperform rating and $430 price target after reviewing Salesforce’s ongoing merger with Informatica, noting both positive and negative factors in the transaction. BMO Capital, however, lowered its price target to $335 from $350, citing a lack of near-term catalysts, particularly in AI initiatives, but still maintained an Outperform rating. Cantor Fitzgerald also reiterated its Overweight rating with a $325 price target, noting the deployment of Salesforce’s Agentforce product and potential price increases as factors that could drive future growth. Additionally, Salesforce announced the appointment of Amy Chang and David Kirk to its Board of Directors, bringing extensive experience in technology and innovation. These appointments are seen as timely given the company’s focus on AI and digital transformation.
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