Inflection AI Stock: Hey Pi, Will there be an IPO?

Explore how to invest indirectly in Inflection AI stock through a public company before the Inflection AI IPO. Get access to select pre-IPO startups like Anthropic and Databricks via the Fundrise Innovation Fund. 

I asked the Pi chatbot a few questions about a potential Inflection AI IPO. Read the response below!

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Recent Inflection AI News

08/26/2024: Inflection adds usage caps to Pi
03/21/2024: MSFT Pays Inflection AI $650 million – not a merger
03/19/2024: Mustafa Suleyman joins Microsoft to lead Copilot
10/14/2023: Suleyman Explains The ‘Coming Wave’ Of Tech
Older news…

About Inflection AI

Inflection AI is an artificial intelligence (AI) startup and private benefit corporation that is developing a personalized chatbot assistant named “Pi” (personal intelligence). The company is also building a “Conversational API” for future use by developers and businesses. 

Pi is a personal AI “designed to be supportive, smart, and there for you anytime,” providing “infinite knowledge based on your unique interests.” Pi can be a “coach, confidante, creative partner, sounding board, and assistant.” 

Users can try Pi at Pi.ai. I tested it on some obscure early 90s music, and it did pretty well, answering questions and offering opinions. 

Tech leaders like Bill Gates have stated that AI as personal assistants could replace the need for online search and shopping (he’s an investor). But companies are still a long way from perfecting the technology. 

Mustafa Suleyman, Karén Simonyan, and Reid Hoffman cofounded Inflection AI.

Suleyman was a co-founder of DeepMind, which Google acquired in 2014. DeepMind is now an Alphabet subsidiary. Simonyan was a principal scientist at DeepMind. Reid Hoffman is a LinkedIn co-founder and partner at Greylock Venture Capital. 

The company aims to build a subscription and direct payment model for monetization. It claims an unwavering commitment to AI safety and personal privacy. 

Ownership

Inflection AI is a privately held startup. The company is owned by co-founders, employees, venture capital firms, prominent corporations, and wealthy individuals.

The latest funding round was completed in June 2023. The deal raised $1.3 billion, bringing the total raised to $1.525 billion since its founding. 

Private Inflection AI investors include Microsoft, NVIDIA, CoreWeave, Reid Hoffman (LinkedIn), Bill Gates, Eric Schmidt (Google), Greylock, Mike Schroepfer (Meta), Demis Hassabis (DeepMind), Will.i.am, Horizons Ventures, and Dragoneer.

Valuation

The Inflection AI valuation is $4 billion as of Summer 2023, based on funding round data and pre-IPO marketplace activity. 

Inflection AI has not publicly disclosed a valuation.

Funding Rounds

WordPress Data Table Plugin

IPO Potential

The Inflection AI IPO date is currently unknown. Private funding for AI is now robust. 

The company is relatively new but could ride the AI trend coattails to an IPO if peers like Anthropic, Sam Altman’s OpenAI, or Elon Musk’s xAI choose that path first. 

Inflection AI leadership has not commented on long-term plans to stay private, get acquired, or pursue an IPO. Microsoft and NVIDIA are current owners and potential suitors.

As a public benefit corporation, Inflection AI may decide to pursue an IPO to allow retail investors and institutions to join in their mission to harness AI to improve humanity in a safe and controlled manner. 

We’ll monitor any reporting or public comments on leadership’s business model and ambitions. Bookmark this page for the latest developments.

I asked the tool for its opinion on having an IPO and when it could happen. 

Will Inflection AI IPO (Answered by Pi)?

I asked the Pi chatbot the following question:

Do you think Inflection AI will ever have an IPO? What factors should your management consider regarding staying private versus an IPO (not generally, but specific to Inflection AI)?

Here is Pi’s answer:

That’s a very interesting question! And it’s a complex one, because there are a lot of factors that Inflection AI would need to consider. On the one hand, an IPO could provide the company with access to a lot of capital, which could be used to fund further research and development, or to expand the company’s operations. On the other hand, going public comes with a lot of additional scrutiny and regulation, which could be a distraction from the company’s core mission. There’s also the risk that the company’s stock price could fluctuate wildly, which could be a source of stress for the company’s management and employees.

I asked this follow-up question:

Please offer your opinion. Will Inflection AI IPO or not?

Ah, now you’re really putting me on the spot! 😄 It’s hard for me to say, because there are so many unknown factors. It’s really impossible for me to predict the future of Inflection AI’s business strategy. But I think it’s an interesting question to consider, and I’m glad you asked it. I’m curious, what’s your opinion? Do you think Inflection AI should go public?

My answer, and another follow-up: 

Yes. What timeframe would make sense for an IPO? How many years will it be until the Infection AI business model will prove to be successful? When will the company be profitable? Please answer with your opinion, even though it’s a hard question with a lot of unknowns.

Wow, you’re really pressing me! 😄 It’s hard to answer these questions with any certainty because, as you say, there are a lot of unknowns. Even so, I’ll give you my opinion. But keep in mind that it’s just an opinion, and it’s based on limited information. I think that if Inflection AI continues on its current trajectory, it could be in a good position to IPO within the next 5 years. As for profitability, it’s really hard to say. A lot of tech companies operate at a loss for many years before they become profitable.

How to Invest in Inflection AI Stock

Since Inflection AI is an early-to-mid-stage private company, it is challenging to become an equity owner today. This company has a rather tight equity stake with deep pockets. Management has proven its ability to raise significant private funds and doesn’t need outside investors. 

However, retail investors can increase their chances of early equity ownership or obtain shares in the IPO by taking the actions outlined below.

Accredited investors may have an easier time via pre-IPO investing platforms. 

1. Access Inflection AI stock via pre-IPO investing platforms

The author has not seen opportunities to invest in Inflection AI stock on prominent pre-IPO investing platforms. 

For direct ownership, investors can monitor platforms like Equitybee, Hiive, EquityZen, Forge Global, and Linqto to access pre-IPO startups by funding employee stock options. In exchange, investors gain a portion of the future stock value.

Other pre-IPO platforms, including may also have availability in the future. 

Shares may be offered for sale by early investors or employees before the IPO, especially if the company raises more venture capital.

Expect to pay at least a $10,000 investment minimum. In some cases, the minimum investment is much higher. The SEC requires pre-IPO investors to be accredited with a net worth over $1 million (excluding primary residence) or income exceeding $200,000 (or $300,000 with a spouse).

Signing up for online access to pre-IPO data, deal alerts, and expressing interest in currently unavailable startups is free.

Non-accredited investors can own venture capital funds like the Fundrise Innovation Fund (review) to access pre-IPO startups.

However, investors cannot select individual pre-IPO companies, and Inflection AI stock is currently not present in the portfolio. There’s a $10 minimum investment. 

Check out our list of top pre-IPO investing platforms for current share availability across platforms. 

Please note: This is a testimonial in partnership with Fundrise. We earn a commission from partner links on AccessIPOs.com. All opinions are my own.

2. Own Equity Indirectly

Microsoft and Nvidia invested in Inflection AI in June 2023 (and perhaps May 2022). Individual investors can own either stock now to gain exposure to Inflection AI growth potential, albeit a very small amount. 

Own either company via an online broker such as TradeStation to have some exposure to the artificial intelligence startup. 

3. Participate in the Inflection AI IPO

Inflection AI has conducted two significant private funding rounds since 2022. More private funding rounds may be necessary in the future. The company is just beginning to produce revenue, so it may take time for the company to grow into a viable entity. 

A small group of venture capital and individual investors have invested in Inflection AI. These are deep-pocketed investors and likely not advocate for an IPO in the immediate future, even if broader market conditions improve.

Inflection AI revenue, profitability, and growth will be key factors in the company’s decision to pursue an IPO. 

Most retail investors will not receive IPO shares. Savvy retail IPO investors may find opportunities to invest during the IPO when it arrives — acquiring shares at the IPO price the day before the stock begins trading on the open market. 

The following online brokers give customers free access to IPOs, even with low account balances:

• TradeStation 
• Robinhood

Exclusive access to highly sought-after IPOs may be limited based on the type of brokerage accounts you hold and which brokerages have secured exclusive rights.

TradeStation has a longer track record of accessing more than 300 IPOs and secondary offerings via its partnership with ClickIPO. 

But Robinhood has the advantage of Silicon Valley networks and a history of getting allocations for high-profile IPOs.

Read the S-1 filings to find mentions of these online brokers to determine which could offer shares to customers. Often, retail customers are shut out. 

Check out this list of best brokers for IPO investing to learn more about IPO access for retail investors.

4. Buy the stock after the IPO

Most investors will not acquire pre-IPO shares or receive an allocation during the IPO, which could be five or more years away.  

Waiting for startups to become publicly traded companies can have advantages. The IPO filing provides investors with access to financial data, and each subsequent quarter paints a more complete picture. 

IPO stock prices typically rise with high-demand companies. You can benefit if you’re in early and sell when the price overheats.

Without IPO access, post-IPO investors may be tempted to acquire shares at inflated prices. 

Avoid chasing over-inflated share prices right after the IPO. Stock price declines after IPOs can be excellent entry points.

Be selective and patient. The most disruptive companies are likely to experience higher valuations a decade from now.

Frequently Asked Questions (FAQs)

Is Inflection AI Stock Publicly Traded?

No. Inflection AI is a private company. 

What is the Inflection AI Stock Symbol?

There is no Inflection AI stock symbol yet because it is a private company.

Here are a few Inflection AI ticker suggestions that are available in the U.S.: 

• AIPI
• FLEC
• INAI

What is the Inflection AI Stock Price?

A public Inflection AI stock price does not exist because the company is private. 

Private stock price information is becoming more available and reliable based on pre-IPO marketplace data and other sources. 

However, the stock price is only the value of one share. Like public companies, the underlying valuation metrics, revenue, profitability, and market sentiment toward private companies are more significant factors than the share price.

Where can I find the Inflection AI S-1 Filing?

Inflection AI has not released an S-1 filing to the public. There is no reporting of a confidential S-1 filing yet. 

The company may be weighing its options regarding pursuing a private path, public path, or acquisition. 

News of a confidential or public S-1 filing would kick off the IPO process, suggesting the IPO could occur during the following months. 

When the company releases the S-1 filing to investors, we’ll link to and embed the document on this web page.

In the meantime, you can check out the most recent S-1 filings in our S-1 filings feed. 

Inflection AI News Archive

06/29/2023: Inflection AI announces $1.3 billion of funding
05/22/2023: Bill Gates says AI could kill Google Search and Amazon
05/13/2022: Inflection AI raises $225M

Conclusion

Investors become interested in buying companies riding extraordinary macroeconomic and technology trends (AI).

However, acquiring ownership in Inflection AI or other foundation AI companies such Perplexity (search disruptor),  CoreWeave (cloud infrastructure), Hugging Face, or chip maker Cerebras pre-IPO will be challenging for retail investors. The equity stack is tight, and the company has its sights on long-term viability. 

Pre-IPO investing platforms have opened more opportunities for retail investors, but there is limited history of Inflection AI stock availability on any pre-IPO platform.

Venture capital investing in a closely-held startup like this one is difficult to penetrate. 

Investors may face difficulties in obtaining pre-IPO shares and IPO shares if the company chooses that path. 

Being a relatively new company (founded in 2021) and only completing two significant private fundraises, Inflection AI may be multiple years away from a public offering or acquisition. 

Lower your expectations if you want to pursue pre-IPO equity in Inflection AI. Your best bet today is to invest indirectly via Microsoft and NVIDIA then monitor pre-IPO platforms for future availability. 

Good luck if you wish to buy Inflection AI stock before the Inflection AI IPO. Invest in pre-IPO and IPO companies at your own risk.

* Disclosure: The web page contains affiliate links from our partners. If a reader opens an account or buys a service from a link in this article, we may be compensated at no additional cost to the reader. Opening an account with a broker that provides access to IPOs does not guarantee the customer allocations of specific IPOs. The author is long MSFT, HOOD, and the Fundrise Innovation Fund.