Artificial intelligence (AI) company Safe Superintelligence, also known as SSI, is reportedly in talks to raise funds at a $20 billion valuation.
Maximize Your Portfolio with Data Driven Insights:
- Leverage the power of TipRanks' Smart Score, a data-driven tool to help you uncover top performing stocks and make informed investment decisions.
- Monitor your stock picks and compare them to top Wall Street Analysts' recommendations with Your Smart Portfolio
The valuation of the AI start-up firm is up significantly from $5 billion in September of last year. The valuation has ballooned quickly given that SSI was founded less than a year ago by Ilya Sutskever who previously held a senior leadership role at OpenAI.
Additionally, SSI does not yet have any revenue. However, the fact that the company is being led by several experts in the areas of AI and machine learning, many of whom previously worked at OpenAI, appears to be enough to have piqued investors’ interest.
Break from OpenAI
llya Sutskever and others left OpenAI last year over concerns about efforts to move that company to a for-profit business model, and amid worries about the safety of AI and its potential impacts on society. In media interviews, Sutskever has said that the focus of SSI will be to develop AI in a safe and measured approach without a focus on profits.
SSI’s latest fundraise is also being viewed as a test for high-profile AI ventures to continue to command premium valuations following an industry-wide reappraisal caused by the emergence of Chinese start-up DeepSeek and its low-cost but highly advanced AI chatbot. It is not yet clear which venture capital or private equity firms might invest in SSI during this new funding round.
Is MSFT Stock a Buy?
As both SSI and OpenAI are privately held companies, we look instead to the stock of Microsoft (MSFT), which is a major investor in AI. MSFT stock has a consensus Strong Buy rating among 32 Wall Street analysts. That rating is based on 29 Buy and three Hold recommendations issued in the last three months. The average price target on MSFT stock of $510.90 implies 24.11% upside from current levels.
