We recently published a list of 10 AI Stocks Dominating the News This Week. In this article, we are going to take a look at where Tesla, Inc. (NASDAQ:TSLA) stands against other AI stocks dominating the news this week.
Elon Musk and OpenAI have jointly proposed to fast-track their trial over OpenAI’s transition to a for-profit company in December. According to OpenAI, the transition toward a for-profit company is crucial to staying ahead in the AI race and raising more capital in the process. Regardless of the shift, Bloomberg News has reported that the company is not expecting its cash flow to turn positive until 2029.
READ ALSO: 10 AI Stocks Making Headlines This Week and 9 Trending AI Stocks Making Headlines Today.
The report has confirmed that the company expects revenue to triple to $12.7 billion in 2025. However, it is struggling with significant costs from chips, data centers, and talent needed to develop cutting-edge AI systems, which is why cash flow may not turn positive until after a few years. The company expects its revenue to surpass $125 billion by this time. As of 2025, the company said its revenue will triple due to the strength of its paid AI software.
Reuters further noted that the company must transition to a for-profit company by the end of the year to secure the full $40 billion funding led by SoftBank, which is in the final stages of raising. If OpenAI fails to restructure into a for-profit company by the end of the year, the bank may invest only $20 billion instead. The ChatGPT maker was originally given a two-year deadline, with the news marking an accelerated deadline.
Provided it successfully completes its $40 billion funding round, it would be the largest of all time, according to data compiled by research firm PitchBook. The deal would set to value the company at $300 billion, including dollars raised. This is more than double the ChatGPT maker’s previous valuation of $157 billion back in October. A part of this funding is anticipated to be used for OpenAI’s commitment to Stargate, an AI infrastructure project announced by President Donald Trump.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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