Powerlaw Corp. (Nasdaq: PWRL), a publicly traded closed-end fund, offers investors exposure to OpenAI's $852 billion valuation through a single Nasdaq-listed security. This comes as reports suggest OpenAI may delay its IPO until 2027.
TL;DR
- Powerlaw Corp. (PWRL) provides public-market exposure to OpenAI through a Nasdaq-listed closed-end fund.
- OpenAI's valuation reached $852 billion in its latest funding round, with reports indicating a potential IPO delay until 2027.
What happened
Powerlaw Corp. (Nasdaq: PWRL) highlighted its pre-IPO exposure to OpenAI, which filed confidential paperwork for a potential initial public offering earlier this month.
Recent reports indicate that OpenAI may delay its IPO until 2027. Ben Black, Chief Investment Officer of PWRL, stated that PWRL backed OpenAI across three tranches starting in spring 2025.
OpenAI completed its recapitalization into OpenAI Group PBC, a public benefit corporation controlled by the nonprofit OpenAI Foundation. Media reports suggest that employees sold about $6.6 billion of stock at a $500 billion valuation, and the company closed roughly $122 billion in primary capital, equating to an approximately $852 billion valuation.
Why it matters
OpenAI is one of the world's most valuable private companies, illustrating how leading technology businesses are creating significant value before reaching the public markets.
PWRL provides public-market exposure to OpenAI through a single Nasdaq-listed security, available in any standard brokerage account and IRA, without the need for a private placement or a separate vehicle for each company.
This development is significant for investors seeking exposure to high-growth private technology companies, particularly in the AI sector.
Key facts
- Powerlaw Corp. (Nasdaq: PWRL) is a publicly traded closed-end fund that offers exposure to OpenAI.
- OpenAI's valuation reached $852 billion in its latest funding round.
- OpenAI may delay its IPO until 2027, according to recent reports.
- PWRL backed OpenAI across three tranches starting in spring 2025.
- OpenAI completed its recapitalization into OpenAI Group PBC, a public benefit corporation.
- Employees sold about $6.6 billion of stock at a $500 billion valuation.
- OpenAI closed roughly $122 billion in primary capital, equating to an approximately $852 billion valuation.
- OpenAI is generating an estimated $2 billion in revenue per month with more than 900 million weekly users.
Context
OpenAI, founded in 2015, is an artificial intelligence research and products company best known for ChatGPT, which brought generative AI into mainstream use.
The company's technology reaches software developers through an API platform and businesses through enterprise products and coding tools like Codex.
A generation of category-defining businesses is reaching significant scale and creating much of its value while staying private longer.