Key Takeaways
- • Tiger Global Management could book a paper gain of nearly $5 billion on its OpenAI stake, one of the largest gains in the firm's history according to data cited by the source.
- • Tiger Global invested about $150 million in OpenAI in 2021 at a valuation of roughly $15.7 billion, following a personal invitation from CEO Sam Altman, and has added to the position more than once since.
- • OpenAI's preparation of a funding round at a valuation of up to $1.4 trillion has pushed the paper value of Tiger's stake to record levels.
- • The hedge fund returned about 9.4% and its crossover fund gained more than 19% in the first nine months of the year, with OpenAI and other AI holdings such as Anthropic and Waymo cited as drivers.
- • The gain remains unrealized and depends on an OpenAI IPO, which is unlikely before next year, following a year in which Tiger's AUM fell from $100 billion to $50 billion.
Summary
Tiger Global Management is closing in on one of its largest investment gains to date, driven by an early bet on OpenAI made before the current AI boom and the spread of ChatGPT. Data show the New York-based firm could book a paper gain of nearly $5 billion, a notable recovery after a string of challenges in recent years.
According to the source, Tiger Global invested about $150 million in OpenAI in 2021, after a personal invitation from founder Sam Altman, when the company's valuation stood at around $15.7 billion. The firm has added to that position more than once since. With OpenAI now preparing a funding round at a valuation of up to $1.4 trillion, the paper value of Tiger's stake has risen to record levels. Tiger Global was reportedly the first hedge fund to take a stake in OpenAI, ahead of most investors.
The position has also flowed through to fund performance. The hedge fund is up about 9.4%, while its crossover fund gained more than 19% in the first nine months of the year, driven by OpenAI and other AI companies including Anthropic and Waymo. These gains follow a difficult year in which Tiger Global's assets under management fell from $100 billion to $50 billion as tech stocks declined and interest rates rose. The firm responded by changing strategy, shrinking its funds, and focusing on smaller, more concentrated bets under founder Chase Coleman.
The OpenAI investment remains on paper. The gains will not be realized unless the company's long-awaited IPO proceeds, which the source says is unlikely before next year. Even so, the bet ranks among the firm's most successful moves since its founding, alongside earlier investments that produced large returns in JD.com and Flipkart.
According to the source, Tiger Global invested about $150 million in OpenAI in 2021, after a personal invitation from founder Sam Altman, when the company's valuation stood at around $15.7 billion. The firm has added to that position more than once since. With OpenAI now preparing a funding round at a valuation of up to $1.4 trillion, the paper value of Tiger's stake has risen to record levels. Tiger Global was reportedly the first hedge fund to take a stake in OpenAI, ahead of most investors.
The position has also flowed through to fund performance. The hedge fund is up about 9.4%, while its crossover fund gained more than 19% in the first nine months of the year, driven by OpenAI and other AI companies including Anthropic and Waymo. These gains follow a difficult year in which Tiger Global's assets under management fell from $100 billion to $50 billion as tech stocks declined and interest rates rose. The firm responded by changing strategy, shrinking its funds, and focusing on smaller, more concentrated bets under founder Chase Coleman.
The OpenAI investment remains on paper. The gains will not be realized unless the company's long-awaited IPO proceeds, which the source says is unlikely before next year. Even so, the bet ranks among the firm's most successful moves since its founding, alongside earlier investments that produced large returns in JD.com and Flipkart.
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