Amazon(US:AMZN) Benzinga·2025-12-20 08:12Core Viewpoint - OpenAI's rumored valuation of $830 billion may still be underestimated due to its explosive growth and the significant investments from major tech companies in AI [1][2]. Valuation Insights - OpenAI's valuation has surged from approximately $30 billion in 2022 to a projected $830 billion, reflecting a growth of about 28 times in four years [2][3]. - The company is seeking to raise around $100 billion at this valuation by the end of March 2026 [2]. - Munster suggests that OpenAI could realistically double or triple in value over the next few years, indicating a strong bullish sentiment [3]. Financial Projections - Revenue estimates for OpenAI are projected to rise from about $4 billion in 2024 to $35 billion in 2026 and $70 billion in 2027, showcasing growth that significantly outpaces public tech peers [7]. - If OpenAI maintains a 100% growth rate, the current valuation of $830 billion would appear cheap [8]. Competitive Landscape - The AI sector is experiencing a talent war, with major companies like Meta and Alphabet aggressively recruiting top AI researchers, which could impact OpenAI's growth and competitive position [4]. - Major tech leaders are heavily investing in AI, indicating a belief in its long-term potential, which could further support OpenAI's valuation [5][6]. IPO and Investment Discussions - OpenAI is reportedly preparing for a potential IPO, which could value the company at up to $1 trillion, with filings expected as early as the second half of 2026 [9]. - The company is also in discussions with Amazon for a potential investment exceeding $10 billion, exploring the use of Amazon's AI chips [10].