19 Nov 2025 - This two-letter word ‘AI’ sounds like a ton of weight. Isn’t it?
Well, this is the industry which shook the world through its scalability, adaptability and capability and that’s not all. AI has been a topic of discussion for investors worldwide while some companies got a fortune through funding while some crashed before a head start.
Is this a topic of discussion for an AI entrepreneur? Yes!
In this report we’ll take a deeper look to discuss about the process and approach to valuing your AI business as a new age entrepreneur helping you master your fundamentals and estimate your numbers for the big day.
AI is an extremely broad category. With the rise of new tools and software’s, a number of companies are covered under this like an umbrella.
However, not every trending company you spot or listen about at some highly reputed conference is an AI company. Your business comes under an AI company when:
⁃ Development of Fundamental Models: This majorly involves developing and training AI models which operate on the backend of AI tools like ChatGPT and MidJourney. Models such as GPT 4.o, DALL-E and Gemini 2 Pro are classic examples of this type of AI business. Usually, this is highly capital-intensive space. Processes like these requires millions of dollars for equipment like graphic cards and processors to train an AI model to its full potential along with resources like electricity and human resources alongside.
⁃ Product Development using Fundamental Models: Tools like Chat GPT and Perplexity AI are the easiest ones to recognize in this category. These are mainly user-oriented and work like a middle-man, in helping users in interacting with AI models like the ones discussed above.
⁃ Operations and Process Automation: Optimizing repetitive tasks using AI has become the new normal. Certain tools like Eleven Labs and Microsoft Co-pilot fall under this category. Major task of such tools is to speed up daily life tasks to boost productivity and maximize output. Companies in the SaaS (Software-as-a-Service) sector have already adapted such tools into their processes.
When we talk about valuation of an AI startup, there are a number of key factors to consider. Unlike a traditional business, AI companies don’t have a manufacturing unit or huge machinery and supply chain costs.
The old-school method of valuation used in different industries (other than technology) can easily fail in determining the right valuation of your AI business. In such scenario, valuation of shares depends on factors as discussed in detail below.
With the rise of innovation, uniqueness of a business has an edge and a price.
As more and more entrepreneurs enter an industry, keeping up with latest innovations becomes challenging for existing companies. This is where patented technologies have an edge over others. Not only this prevents leaking of an idea to competitors but also keeps the valuation on the upper side. As we discussed above, knowledge is the primary asset in this industry not the machinery.
Data is the key resource on which an AI company capitalizes on. Its analysis and usage of collected data from the users is also an essential part but so is the risk.
Data leaks and privacy concerns are a key factor when determining the valuation of an AI company. Companies which priorities data safety and ethical practices build higher trust among its customers and investors valuing them higher.
These two are interlinked in most cases. Scalable products sustain better than those which are not. This metric determines if the product developed actually solves a real-life problem or is it finding a problem just for sake of solving it. Read that again.
Building trust of your investors is another key skill you need to possess as an entrepreneur. Profitability is still a challenge for AI businesses due to a high R&D cost as well as recurring expenses. Hiring top talent, electricity expense and managing operations effectively requires nothing but skill and a proper roadmap to optimizing the cost and generate enough margins.
A profitability path is the key to making it big on your next pitch.
The saying - “Jockey is more important than the horse’ fits perfectly in the world of entrepreneurship.
Founders with previous experience of working on successful projects secure higher valuations than those who’ve not, however exceptions might exist. This is an additional factor in building trust of the investors in you.
Top minds are the biggest asset to a company in the AI industry in 2025 and forever. Period.
While we’ve had a look at certain parameters to determine the valuation of an AI company, as an entrepreneur its equally important to monitor the industry trends. Here’s a quick look at the valuation of top AI companies worldwide.
OpenAI
The giant behind giants. If you were asked to tell the name of an AI tool you rather use every day 99% of you would speak ChatGPT, our daily driver these days.
OpenAI is valued at $300 Billion dollars, from their latest funding in March 2025. This company saw an unreal growth story which rarely happened in the SaaS industry but we know AI entrepreneurs are defying the old principles.
Open AI’s valuation nearly doubled in 2024, getting it a status of the highest valued tech firm across the globe.
Indian entrepreneurs like Aravind Srinivas are also among the notable names in the artificial intelligence industry through Perplexity.
Perplexity AI has been in existence since around beginning of 2023, backed by brains like Jeff Bezos (Founder & CEO - Amazon), Naval Ravi Kant (Indian American Entrepreneur) and Susan Wojcicki (Ex-CEO, YouTube), since their last round March 2025, the company has been valued at $14 Billion, soaring from $200 Million in ending of 2023, in only 3 years!
This is a proof that AI’s potential is not only limited to training AI models, its huge.
Claude AI has been named among the upcoming stars of the AI industry as well.
Firms like Amazon have invested in the parent company of Claude AI with a valuation multiple of 58x of revenue, and as per the latest news about their last round in Feb 2025, Anthropic, the parent company of Claude is valued over $61 Billion! And this is exactly the reason behind consulting a firm about the valuation of your company.
As an entrepreneur, your role is to keep operations on going, generating profits for your business, building relations with customers not to guess the value of your business without prior experience, and this is exactly where firms like Pure Value Global are helpful.
AI Businesses are still new-age. Though evolved enough, every industry goes through a time of volatility when its foundation is being set for coming years.
It is true that AI startups and mid-size companies are growing at a surprisingly high rate but determining the right valuation of your startup comes in handy when raising funds from investors or family offices or maybe planning an IPO for your pre-existing company (if you’ve had the first mover advantage!).
This is where Pure Value Global comes into picture.
With over 25 years of experience and the trust of 250+ clients globally, get your AI business valued from industry experts. Pure Value Global has built its foundation on expertise. For AI businesses, experts at Pure Value Global help with
⁃ Valuation in Strategic Decisions
⁃ Valuation for IPO
⁃ Valuation in Merger and Acquisition
⁃ Valuation for Fund Raising
⁃ Valuation for Risk Management.
Things might have been clear by now. AI companies thrive on their founders, human resources and future capabilities as we observed in the case of giants like Open AI. It is important to note that a qualified team of professionals is an ideal way to get your AI start-up valued accurately.
For compliances, inquiries or to consult directly with Pure Value Global, ring us up at +91 9311505553 or write to us at info@purevalueglobal.com.
Please note that the information discussed above is for educational purposes and basic understanding and not for direct implementation without prior experience with valuation as it may attract complications or penalties of any form.
Hope you found the report useful.
Drop your thoughts or queries in the comments section.