Key Takeaways
- • Tiger Global committed $150 million to OpenAI in 2021, after OpenAI CEO Sam Altman pitched the stake at a $15.7 billion valuation, and has since added to its position several times, according to people familiar with the deal.
- • OpenAI is negotiating a fundraising round of about $30 billion at a valuation near $1.4 trillion, which would leave Tiger Global with an estimated $5 billion paper gain, one of the firm's largest wins since its founding roughly 25 years ago.
- • Realizing the gain depends on an IPO, and Altman has pushed any listing to at least next year, so the windfall remains unrealized.
- • Tiger Global's hedge fund rose 9.4% through the first nine months of the year, and its public-private crossover fund gained 19.3%, with the OpenAI position cited as a driver of results.
- • The venture fund holding OpenAI as one of its largest positions reported a 65% gross internal rate of return and a 44% net IRR as of June 30. Neither firm commented.
Summary
Tiger Global's early investment in OpenAI could produce one of the firm's largest returns in its roughly 25-year history. According to people familiar with the deal, Altman phoned Tiger Global founder Chase Coleman before ChatGPT became a cultural phenomenon in 2022, offering a stake at a $15.7 billion valuation. Tiger Global committed $150 million in 2021 and has since increased its holding several times. The report notes that other investors entered earlier: Khosla Ventures joined in 2019, and around 2015 the effort drew support from Y Combinator, Reid Hoffman and Peter Thiel. Tiger Global nonetheless became the first hedge fund investor in the company, and most large investors did not fully recognize the opportunity until after ChatGPT's breakout.
OpenAI is now negotiating a fundraising round of roughly $30 billion at a valuation near $1.4 trillion. At those terms, Tiger Global's stake would carry an estimated $5 billion paper gain, according to the report. Converting that gain into cash will take time. A complete exit depends on an IPO, and Altman has pushed any listing to at least next year. Until then, the figure remains an unrealized mark rather than distributable capital.
The position has already contributed to reported performance. Through the first nine months of the year, Tiger Global's hedge fund rose 9.4%, and its public-private crossover fund gained 19.3%, according to the people cited. In the venture pool, OpenAI is among the largest holdings in the latest fund, which posted a 65% gross internal rate of return and a 44% net IRR after fees as of June 30. Representatives for both Tiger Global funds did not provide comment on these figures.
OpenAI is now negotiating a fundraising round of roughly $30 billion at a valuation near $1.4 trillion. At those terms, Tiger Global's stake would carry an estimated $5 billion paper gain, according to the report. Converting that gain into cash will take time. A complete exit depends on an IPO, and Altman has pushed any listing to at least next year. Until then, the figure remains an unrealized mark rather than distributable capital.
The position has already contributed to reported performance. Through the first nine months of the year, Tiger Global's hedge fund rose 9.4%, and its public-private crossover fund gained 19.3%, according to the people cited. In the venture pool, OpenAI is among the largest holdings in the latest fund, which posted a 65% gross internal rate of return and a 44% net IRR after fees as of June 30. Representatives for both Tiger Global funds did not provide comment on these figures.
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