Deepwater Asset Management‘s Gene Munster said OpenAI’s rumored $830 billion valuation may still be too low on Friday, arguing that explosive growth, unmatched scale, and Big Tech’s all-in AI push outweigh mounting losses and bubble fears.
Munster Says OpenAI’s Valuation Still Misses AI’s Upside
Taking to X, Munster said OpenAI’s next funding round could value the company at $830 billion—and that the figure may still underestimate its long-term potential.
“The mind-numbing reality of AI’s potential,” Munster wrote on X, adding that OpenAI’s valuation is “up roughly 28x in four years,” yet “still undervalued.”
In a related blog post, Munster cited a Wall Street Journal report that OpenAI is seeking to raise about $100 billion at an $830 billion post-money valuation by the end of March 2026.
Despite widespread skepticism, he said “there is a sound case that OpenAI is attractively valued” and could “realistically double or triple in value over the next few years.”
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The Bear Case: Losses, Hype, And Dot-Com Parallels
Munster noted that the company’s valuation has surged from roughly $30 billion in 2022 to a projected $830 billion, while internal forecasts suggest cumulative losses of $100 billion to $150 billion between 2025 and 2029.
He also warned of echoes of the dot-com era, when early tech leaders like Netscape and Lycos failed to survive, and pointed to an intensifying talent war as rivals such as Meta Platforms, Inc. (NASDAQ:META) and Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google aggressively recruit top AI researchers.
Why Big Tech’s AI Bet Changes The Equation
Still, Munster argued the bullish case deserves equal weight. He said leaders, including Microsoft Corp’s (NASDAQ:MSFT) CEO Satya Nadella, Nvidia Corp’s (NASDAQ:NVDA) Jensen Huang, Alphabet CEO Sundar Pichai, Meta’s Mark Zuckerberg, and Tesla Inc.’s (NASDAQ:TSLA) Elon Musk are “betting the company” on AI.
When leaders of this caliber reallocate tens of billions of dollars, Munster wrote, adding that it signals a belief that AI’s substance will ultimately “overtake the hype.”
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Growth And Scale Set OpenAI Apart
Munster said OpenAI’s growth trajectory justifies a valuation premium. He estimates revenue could rise from about $4 billion in 2024 to $35 billion in 2026 and $70 billion in 2027—implying growth far above public tech peers.
He also highlighted OpenAI’s massive reach, estimating ChatGPT now has close to 900 million weekly active users, giving it a distribution advantage rivaled only by Google and Meta.
The bottom line, Munster said, if OpenAI sustains 100% growth, $830 billion will look cheap. “If it doesn’t, the valuation is going lower.”
IPO Plans Could Aim For $1 Trillion
Separately, Microsoft-backed OpenAI is reportedly preparing for a potential blockbuster public debut.
Earlier, Reuters reported that the company could submit filings with U.S. securities regulators as soon as the second half of 2026, with estimates suggesting the IPO could value OpenAI at up to $1 trillion.
OpenAI is also said to be holding discussions with Amazon.com Inc. (NASDAQ:AMZN) over a potential investment of more than $10 billion, while exploring the use of Amazon’s AI chips.
Benzinga Edge Stock Rankings show that Microsoft maintains a favorable long-term outlook, even as its short and medium-term performance trends remain negative, with deeper metrics available on the platform.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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