JPMorgan Chase & Co. is expanding its research coverage to include private companies — starting with one of the sector’s most watched names, OpenAI.
The Wall Street giant launched its first-ever research report on OpenAI on Friday, signaling a broader initiative to provide structured insights on high-impact private firms. The expansion focuses initially on sectors where private companies are significantly influencing innovation and industry dynamics, such as artificial intelligence and software, according to a source familiar with the strategy.
Unlike its traditional equity research, JPMorgan’s private company coverage will exclude price targets, ratings, or financial estimates. Instead, the goal is to provide investor clients with in-depth analysis, trend tracking, and strategic insights. The effort reflects a shift in investor interest, with professional investors increasingly allocating capital to private firms — many of which now command valuations rivaling major public companies.
“Private companies are increasingly pivotal in shaping the growth and outlook of industries,” said Hussein Malik, JPMorgan’s head of global research, in a note to clients. “Understanding their impact is and will remain crucial for both public and private market investors to make informed investment decisions.”
JPMorgan’s first report, authored by analysts Brenda Duverce and Lula Sheena, highlighted the fierce competition in the AI sector and the challenges OpenAI may face in maintaining a long-term edge in large language models. The report also noted that profitability for the Microsoft-backed firm may not be realized until 2029, posing a test for investor patience.
The private markets have become increasingly crowded with high-value firms. PitchBook data shows nearly 1,500 global startups are now valued at $1 billion or more. High-profile names like SpaceX and Bytedance have reached valuations of $350 billion and $400 billion, respectively — levels that would place them among the largest companies in the S&P 500.
JPMorgan’s expansion comes as the bank reported a surprise uptick in investment banking fees this week, hinting at a potential rebound in dealmaking after a slowdown tied to recent U.S. tariff concerns. The firm maintains one of Wall Street’s largest research teams, with over 800 analysts producing about 100,000 reports annually.
While JPMorgan continues to invest heavily in private markets — including billions in direct lending — CEO Jamie Dimon struck a cautious tone, noting on an earnings call that “you may have seen peak private credit.”
By bridging the information gap on fast-growing private firms, JPMorgan’s new research approach may offer a critical edge to clients navigating an increasingly complex investment landscape.
