Tiger Global's $150 million OpenAI stake could yield $5B paper profit
Business
Tiger Global, a major hedge fund, might turn its $150 million bet on OpenAI in 2021 into a massive $5 billion paper profit.
It invested before ChatGPT became a thing, and now that OpenAI is aiming for a $1.4 trillion valuation, Tiger's early move is looking pretty genius.
Tiger Global rebounds, OpenAI IPO needed
OpenAI CEO Sam Altman personally invited Tiger Global to invest, making it one of the few big firms in on the action early.
This win has helped Tiger bounce back after a rough 2022 for tech stocks. Its hedge fund is up 9.4% this year, while its public-private crossover fund is up 19.3%.
But here is the catch: it will only actually get that money if OpenAI goes public, which is not happening until at least next year.