Posted by Frankfurt, Germany: Private Equity Ripplewood plans to invest $1 billion in OpenAI, according to a Bloomberg report, which cited sources.
OpenAI is currently in the media with the potentially revolutionary but also controversially discussed chatbot software ChatGPT and the image artificial intelligence Dall-E. The idea behind it seems obvious: Ripplewood would like to set up the software as a driving force in a fund.
The PE firm Ripplewood and OpenAI have not commented on a potential investment deal. The US asset manager, which is increasingly advancing the European market, is considered an important financier.
Irrespective of financial advantages, Ripplewood could benefit significantly from the stake simply by the fact that in the event of a possible IPO a ChatGPT stake is a giant valuable asset in the bargain for investors.
Ripplewood plans to launch an AI-powered investment opportunity
Private investors would be able to have access to a new form of investing through innovation.
Through the use of artificial intelligence, investors should benefit from greater accuracy in forecasting market developments. The AI-supported investment opportunity intends to be a user-friendly and cost-efficient solution to optimise investors’ portfolios.
“We are pleased to be able to offer our clients an innovative investment opportunity based on the latest technology,” said a Ripplewood spokesman.
“By using artificial intelligence, we can achieve greater accuracy in forecasting market developments and thus manage our clients’ portfolios more effectively,” added the spokesman.
The market launch of the AI-supported investment option is planned for the end of 2023 if participation in OpenAI is successful. Ripplewood and its partners are convinced that this new form of investing has the potential to revolutionize the way private investors invest.
The driving force behind the PE firm is the 66-year-old American investment banker Timothy C. Collins, who founded the investment company Ripplewood Holdings LLC in New York in 1995.
After the turn of the millennium, Ripplewood, in which Collins currently still holds a 15% stake, expanded its investments in Europe and Southeast Asia alongside other investors such as Blackrock, Nathaniel Rothschild and Bank of America.
In Germany, Ripplewood is best known for its investments in financial institutions and the failed takeover of Opel.