Robinhood's Venture Fund (RVI) announced it has taken a stake in OpenAI. What is funny about it, though, is that well... the value of the stake was $75 million....
Seems like Robinhood wants to hop on the booming trade of the flashy private companies with this move and follow the path Fundrise Innovation Fund (VCX) laid, as it surged almost 2000% to over $300 a share because of its exposure to SpaceX and Anthropic. The NAV for VCX is less than $20 a share, which shows the crazy premium people are willing to pay.
It’s good that everyone has access to private businesses with products like this but the valuations are astronomical.
110% agree. Some of these AI companies will make it, of course, but a lot of them are going to end up imploding. Prior to this addition, I actually liked the offers in the initial slate of stocks in RVI. Databricks, Boom Supersonic, and Oura are all companies I really like that are in a great place, both industry-wise and financing-wise. When they added Stripe, I was impressed, but this move seems to be more of a headline-seeking move since it was $75 million, and the company has raised nearly $200 billion overall.