JPMorgan Chase & Co. is starting research on private companies, reported Bloomberg. The bank announced it is starting coverage on OpenAI.
This marks a big change for the Wall Street giant as it looks to address the market beyond public markets.
Many investors are increasingly putting more money into private companies as most of them are delivering industry-changing work without the scrutiny of a listed company.
Coverage on innovation-focused sectors
The expansion will focus on sectors where private companies play a critical role in driving innovation and influencing market dynamics.
Bloomberg reported that JPMorgan’s research coverage will begin with companies in the artificial intelligence and software sectors.
The bank launched its first report on OpenAI, the high-profile AI startup behind ChatGPT, on Friday.
Unlike traditional research on public companies, the new offering will not include stock ratings, price targets, or financial estimates.
Instead, it will provide structured information and tracking to help clients better understand the role of private companies in shaping industry trends.
“Private companies are increasingly pivotal in shaping the growth and outlook of industries,” said Hussein Malik, JPMorgan’s head of global research, in an external note to clients.
“Understanding their impact is and will remain crucial for both public and private market investors to make informed investment decisions.”
Rising importance of private firms in global markets
The move reflects a broader shift in the investment landscape, where private firms are playing a growing role in attracting capital and shaping market expectations.
High-profile examples include Elon Musk’s SpaceX, which reached a valuation of $350 billion last year, a level that would place it among the top 25 companies in the S&P 500.
ByteDance Ltd., the parent company of TikTok, has also seen its valuation marked above $400 billion by at least three major investors, according to Bloomberg.
PitchBook data shows that nearly 1,500 startups globally have reached unicorn status, with valuations of $1 billion or more.
These firms often fall outside the scope of traditional Wall Street research due to limited public financial data and the sector’s focus on publicly traded companies.
JPMorgan’s new initiative aims to bridge that gap for institutional investors seeking more visibility into this fast-growing segment.
In their debut report on OpenAI, JPMorgan analysts Brenda Duverce and Lula Sheena cautioned that it will be difficult for chatbot developers to sustain long-term competitive advantages.
They noted that OpenAI is not expected to achieve profitability until 2029, suggesting that “investor expectations may be tested” in the years ahead.
Strategic expansion amid shifting market dynamics
JPMorgan’s global research team is among the most extensive on Wall Street, employing over 800 analysts and producing approximately 100,000 pieces of research annually.
The bank’s decision to begin covering private firms underscores its efforts to stay ahead of market trends and meet the information needs of its institutional clients.
The announcement comes on the heels of JPMorgan reporting a surprise rise in investment-banking fee income, potentially signaling a rebound in dealmaking following a slowdown caused by tariff-related uncertainty.
Meanwhile, the bank has committed billions to direct lending for companies that avoid traditional financing routes.
Still, CEO Jamie Dimon noted on the latest earnings call that “you may have seen peak private credit,” hinting at potential limits to the sector’s explosive growth.
With its new private company coverage, JPMorgan is aiming to offer investors a clearer lens into an increasingly influential area of the global economy, one that has long operated beyond the reach of traditional equity research.
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