GenAI Investors Get New Tool Tracking Performance of OpenAI, xAI

Morningstar Inc. is launching a new index to track the performance of 20 generative artificial intelligence companies. The index will be published daily and use funding data gathered by Pitchbook, which Morningstar acquired in 2016. This move aims to provide investors with greater transparency on the fast-growing GenAI sector.

The index includes major players in the GenAI space such as OpenAI and xAI Corp. These companies are often private and do not disclose detailed financial information publicly. Morningstar's index aims to fill this gap by providing a comprehensive view of the sector's performance.

The new index is designed to monitor the entire lifecycle of GenAI companies. This means that a company will remain in the index even if it goes public. This structure allows investors to track long-term trends and developments in the sector.

Why Did This Happen?

Many of the fastest-growing technology companies are choosing to stay private for longer periods. This trend has created a demand for tools that provide transparency into private market performance. OpenAI, for example, was recently valued at $500 billion, while Anthropic is seeking funding at a $350 billion valuation.

Private companies typically only share financial statements with lenders and existing investors. Unlike public companies, they are not required to disclose audited information quarterly. This lack of transparency has driven the need for innovative tools like Morningstar's index.

How Does the Index Work?

The index is built on a perpetual structure, meaning it tracks the entire life cycle of the companies included. This includes companies that may eventually go public. By maintaining these companies in the index, Morningstar provides a consistent benchmark for investors.

Morningstar has already launched other indexes targeting late-stage venture capital-backed companies. These include companies with valuations exceeding $1 billion. The company's approach to private market indexes has set a precedent for its latest GenAI index.

Rival index providers have also entered the private market space. By the end of 2025, almost half of Index Industry Association members had either launched or announced plans to start a private market index. This trend reflects a growing interest in private market performance.

What Are Analysts Watching Next?

As GenAI matures, the importance of having a robust benchmark for tracking innovation and economic value is becoming evident. Morningstar's new index may serve as a critical tool for investors seeking to understand the sector's evolution. Analysts are watching how the index performs and whether it will become a standard reference for GenAI investments.

At least one major tech company is planning to use Morningstar's index to benchmark its investments. This early adoption suggests the index may gain traction among institutional investors. However, the firm has not yet been identified.

The index includes a range of GenAI companies such as Mistral AI, Databricks, and Cohere. These firms represent different aspects of the GenAI ecosystem, from foundational model development to enterprise solutions. This diversity enhances the index's ability to reflect the sector's overall performance.