Morningstar Launches Index Tracking Top Generative AI Firms Like OpenAI and Anthropic

Morningstar, a leading provider of investment insights, has launched the Morningstar PitchBook GenAI 20 Index. This new index is designed to track the performance of companies that are pure-play players in the generative AI (GenAI) space. The index includes firms like OpenAI and Anthropic, which are at the forefront of GenAI innovation.

The launch of this index addresses a significant gap in the market. Many of the companies leading the GenAI revolution remain private and are not represented in traditional benchmarks. This index provides targeted exposure to these firms, enabling investors to better understand and analyze the sector's growth potential according to Morningstar.

The index is built on a perpetual structure, ensuring continuous tracking of the companies as they move from private to public markets. This approach allows for a more accurate and consistent measurement of the GenAI market's evolution. Sanjay Arya, Head of Innovation at Morningstar Indexes, emphasized the importance of such a benchmark in capturing the next decade's growth in AI innovation.

Why Did This Happen?

The rapid development and adoption of generative AI technologies have created a need for transparent and measurable benchmarks. As private markets become increasingly critical in technology development, having a clear view of opportunities across both public and private markets is essential. Morningstar's index aims to provide this clarity, particularly as the AI landscape continues to evolve.

The index leverages PitchBook's global private markets data and expertise to identify companies advancing core technologies like machine learning, natural language processing, and agentic AI. This data-driven approach ensures the index remains relevant and representative of the industry's leaders.

How Did Markets React?

The launch of the Morningstar PitchBook GenAI 20 Index has been met with positive reception. Investors are seeking tools to better understand the AI sector, and this index offers a structured way to track the performance of key players. The index's perpetual structure ensures that companies remain in the index even as they transition to public listings, providing a more comprehensive view of the market.

Dimitri Zabelin, Senior Investment Research Analyst at PitchBook, noted that GenAI is reshaping how software is built and deployed across various sectors. As companies advancing foundational GenAI capabilities become central to value creation in the technology ecosystem, having a clear benchmark becomes increasingly important.

What Are Analysts Watching Next?

Analysts are keeping a close eye on the index's performance and its ability to capture the growth of the AI market. As generative AI continues to influence nearly every sector, the success of the index could provide valuable insights for investors looking to capitalize on this trend. The index's structure is designed to adapt to the evolving market, ensuring that it remains a relevant tool for investors.

The index's launch also signals a broader trend in the financial industry, where there is a growing emphasis on private market data and benchmarks. This shift is driven by the increasing importance of private companies in the technology sector. Morningstar's new index is part of a larger effort to provide investors with tools that better reflect the realities of the current market landscape.

Overall, the Morningstar PitchBook GenAI 20 Index is poised to become a key benchmark for investors seeking exposure to the generative AI sector. As the market continues to evolve, this index will provide valuable insights into the performance of the companies driving innovation in this space. Investors will be watching closely to see how the index performs and what it can reveal about the future of the AI market.