In 2025, OpenAI dominated investor attention, striking megadeals with major tech companies like Microsoft, Oracle, AMD, and Nvidia, totaling $1.4 trillion in spending over eight years. The company pivoted to a for-profit model, with private shares surging 153% and a $500 billion valuation.
OpenAI was named Yahoo Finance’s Company of the Year for its significant impact on the investing narrative in 2025. The startup, led by CEO Sam Altman, has been a driving force in the AI boom, securing multibillion-dollar deals with AMD and Oracle, catalyzing stock market movements.
OpenAI’s potential for growth is enormous, with projections estimating a $1 trillion IPO by 2026. The company boasts 800 million weekly active users, $13 billion in 2025 revenue, and plans to go public at a $1 trillion valuation. It aims to reach $200 billion in revenue by 2030, with massive spending commitments to tech partners like Oracle, Microsoft, and Amazon.
Despite its ambitious spending plans and rapid growth, OpenAI faces investor concerns over its colossal financial commitments. The company’s focus on artificial general intelligence (AGI) and massive compute investments has sparked both excitement and apprehension among investors. OpenAI has raised nearly $50 billion but faces a $207 billion funding gap by 2030, sparking concerns of an AI bubble. Partners’ stocks plummeted in November, with Oracle down 23%. Analysts remain bullish, citing Nvidia’s $500 billion AI chip backlog. OpenAI’s first-mover advantage is fading, with Google’s Gemini 3 making waves.
Altman faces pressure to refocus OpenAI’s efforts on LLM and chatbot technologies. Analysts warn of a potential AI bubble driven by hyperscalers and startups. Despite concerns, the long-term investment thesis for generative AI remains strong. OpenAI’s future hinges on staying ahead of rivals in the AI market.
OpenAI’s CEO declared “code red” to prioritize ChatGPT development. The company secured a $1 billion investment from Disney for ChatGPT 5.2. The focus is on improving APIs and chatbot capabilities for a potential trillion-dollar IPO. Microsoft is poised to benefit from OpenAI’s success, while cutbacks could impact other partners.
The genie unleashed by ChatGPT may benefit cloud service incumbents like Microsoft, Google, and Amazon. Luria predicts OpenAI will prioritize deals with Microsoft due to its ownership stake. Other partners may face renegotiations and disappointment if OpenAI hits financial roadblocks. The big three hyperscalers are well-positioned to weather any AI bubble bursts. RBC estimates over half of Oracle’s AI order backlog is from OpenAI, with the startup projected to drive majority of Oracle’s cloud revenue from 2027 to 2030. CoreWeave, heavily indebted for OpenAI, reports $311 million in net interest expense. Nvidia leads with diverse contracts, while OpenAI’s bet on AMD poses challenges but boosts AMD’s credibility. AMD’s growth from 0.5% to 41% market share in servers, competing effectively with Intel. Despite OpenAI’s impact, the AI ecosystem has evolved significantly, akin to internet’s growth from dial-up era to current usage. Exciting possibilities lie ahead for AI in the coming years. 1. The FDA has approved the first Alzheimer’s drug in nearly 20 years, despite skepticism from some experts. Aducanumab, developed by Biogen, targets amyloid plaques in the brain and has shown mixed results in clinical trials.
2. The G7 summit concluded with a commitment to donate 1 billion COVID-19 vaccine doses to poorer countries. The leaders also discussed climate change, China, and Russia’s aggression in Ukraine during the three-day summit in Cornwall, UK.
3. Amazon founder Jeff Bezos announced he will fly to space on his company Blue Origin’s first human flight on July 20. Bezos will be joined by his brother Mark, as well as the winner of an online auction for a seat on the flight.
Read more at Yahoo Finance: OpenAI is the 2025 Yahoo Finance Company of the Year