JPMorgan Expands Research to Include Private Tech Giants Like OpenAI

JPMorgan, the largest U.S. lender, is venturing into new territory by initiating research coverage on private firms, particularly those in the fast-growing tech sector. According to an internal memo seen by Reuters, the bank has released its first report on OpenAI, a company that has sparked a significant AI revolution on Wall Street. Unlike traditional research notes, these new reports will not include estimates, price targets, or ratings. Instead, they aim to offer structured information and in-depth insights into key disruptors and their impacts on various industries. Hussein Malik, J.P.Morgan’s head of global research, emphasized the relevance of private companies in today's market landscape, especially within the "new economy" space. "The goal of this offering is to support our investor clients by providing structured information and tracking, offering deeper insights into key disruptors and their impact on the sectors in which they operate," Malik stated in the memo. This shift is driven by the increasing number of industry leaders opting to remain private, thereby attracting a larger share of investor capital. Institutional investors are now more focused on these private companies, which often develop groundbreaking technologies that can significantly influence established sectors. Nearly 1,500 private startups have achieved unicorn status—valued at over $1 billion—according to PitchBook’s tracker. North America alone boasts more than 1,000 unicorns, collectively worth nearly $4 trillion. As private companies continue to play a crucial role in transforming legacy industries, Wall Street is adapting to the rising demand for comprehensive insights into these firms. This change reflects a broader evolution in how market power and potential are assessed, with private tech startups increasingly seen as drivers of innovation and economic growth.