Apple and Nvidia in Talks to Join OpenAI's $100 Billion Funding Round

Apple And Nvidia Seeking To Join OpenAI's Funding Talks: All Details

OpenAI is gearing up to be valued at $100 billion with the latest funding round (Reuters) -Apple and chip giant Nvidia are reportedly in talks to invest in OpenAI as part of a new fundraising round that could value the ChatGPT maker above $100 billion, according to media reports on Thursday. The Wall Street Journal first reported on Apple's interest, citing sources, while Bloomberg News reported on Nvidia's potential involvement. The news comes a day after the Journal reported that venture capital firm Thrive Capital would invest around $1 billion in OpenAI, leading the funding round. Apple and OpenAI not immediately respond to Reuters requests for comment, while Thrive Capital, Nvidia and Microsoft declined comment. OpenAI has become increasingly important to Apple's artificial intelligence strategy, with the iPhone maker bringing the AI firm's chatbot, ChatGPT, to Apple devices in June as part of "Apple Intelligence." Apple was also reported to gain an observer role on OpenAI's board. Microsoft, OpenAI's largest strategic investor with over $10 billion invested, is also expected to participate in the funding round, according to the WSJ report. The exact investment amounts from Apple, Microsoft and Nvidia remain undisclosed. OpenAI's high valuation is a result of the AI arms race it sparked with the launch of ChatGPT in late 2022, prompting companies across industries to invest billions in the technology to stay ahead of the competition and capture market share. The Sam Altman-led firm was reportedly valued at $80 billion in February after completing a deal where the company would sell existing shares in a so-called tender offer led by Thrive Capital.

Apple, Nvidia in talks to join OpenAI funding round, reports say

Apple and chip giant Nvidia are in talks to invest in OpenAI as part of a new fundraising round that would value the ChatGPT maker above $100 billion, according to media reports on Thursday. The news comes a day after the Wall Street Journal reported that venture-capital firm Thrive Capital would invest around $1 billion in OpenAI, leading the funding round. Apple and OpenAI did not immediately respond to Reuters requests for comment, while Thrive Capital, Nvidia and Microsoft have declined comment. OpenAI has become increasingly important to Apple's artificial intelligence strategy, with the iPhone maker bringing the AI firm's chatbot, ChatGPT, to Apple devices in June as part of "Apple Intelligence." Apple was also reported to gain an observer role on OpenAI's board. Apple, Microsoft drop board observer seats at OpenAI Microsoft, OpenAI's largest strategic investor with over $10 billion invested, is also expected to participate in the funding round, according to the report. The exact investment amounts from Apple and Microsoft remain undisclosed. OpenAI's high valuation is a result of the AI arms race it sparked with the launch of ChatGPT in late 2022, prompting companies across industries to invest billions in the technology to stay ahead of the competition and capture market share. The Sam Altman-led firm was reportedly valued at $80 billion in February after completing a deal where the company would sell existing shares in a so-called tender offer led by Thrive Capital. Read Comments

Nvidia discusses joining OpenAI's latest funding round

Nvidia Corp, the world's biggest chipmaker, has discussed joining a funding round for OpenAI that would value the artificial intelligence startup at more than $100 billion, according to people familiar with the matter. Apple Inc and Microsoft Corp also have been in talks about participating in the financing, said the people, who asked not to be identified because the deliberations are private. The round would be led by Thrive Capital, which is investing about $1 billion, Bloomberg reported earlier this week. Nvidia has discussed investing about $100 million, two of the people said. Also read: Generative AI's economic impact only starting, says OpenAI CTO If the discussions move forward, it would mean the three most valuable tech companies are all backing OpenAI, maker of the groundbreaking ChatGPT chatbot. Microsoft was already OpenAI's biggest funder, having invested roughly $13 billion. Representatives for Nvidia, Apple, Microsoft, OpenAI and Thrive all declined to comment. Big Tech's influence over artificial intelligence has been drawing mounting scrutiny, with regulators in both the EU and US expressing concerns about Nvidia's dominance in AI chips and Microsoft's close relationship with OpenAI. Microsoft has tightly integrated OpenAI's services into its Windows and Copilot AI platforms -- a bet that the capabilities will help drive growth. Apple has existing ties with OpenAI as well. The iPhone maker is adding ChatGPT to its new suite of AI features, called Apple Intelligence. The company also was slated to take a board observer seat at OpenAI -- alongside Microsoft -- but those plans were dropped in July. Nvidia, meanwhile, supplies the critical infrastructure needed to develop and run AI tools like ChatGPT. It's the biggest maker of so-called AI accelerators, sales of which have soared over the past two years. In Nvidia's latest quarterly report, released on Wednesday, revenue more than doubled to $30 billion. It predicted even bigger sales in the current quarter, topping the average analysts estimates, though investors have grown so accustomed to blowout results that the shares still declined. OpenAI Chief Financial Officer Sarah Friar told employees in a memo Wednesday that the company was seeking fresh capital, without giving details, according to people familiar with the matter. The company has been in discussions to raise funding at a valuation at or above $100 billion since at least December, Bloomberg has reported. The financing would bolster one of the world's most valuable venture-backed startups. The runaway success of ChatGPT also has kicked off an arms race among tech companies, which are integrating AI technology across their products and funding other promising startups. In her memo to employees, Friar said that OpenAI would use the financing to acquire more computing power and fund other operating expenses, the people said. The Wall Street Journal previously reported on the discussions with Apple. More stories like this are available on bloomberg.com SHARE Copy linkEmailFacebookTwitterTelegramLinkedInWhatsAppRedditPublished on August 30, 2024

Jensen Huang's Nvidia may invest in OpenAI along with Apple

Nvidia Corp., the world's biggest chipmaker, has discussed joining a funding round for OpenAI that would value the artificial intelligence startup at more than $100 billion, according to people familiar with the matter. Apple Inc. and Microsoft Corp. also have been in talks about participating in the financing, said the people, who asked not to be identified because the deliberations are private. The round would be led by Thrive Capital, which is investing about $1 billion, Bloomberg reported earlier this week. Nvidia has discussed investing about $100 million, two of the people said. If the discussions move forward, it would mean the three most valuable tech companies are all backing OpenAI, maker of the groundbreaking ChatGPT chatbot. Microsoft was already OpenAI's biggest funder, having invested roughly $13 billion. Representatives for Nvidia, Apple, Microsoft, OpenAI and Thrive all declined to comment. Big Tech's influence over artificial intelligence has been drawing mounting scrutiny, with regulators in both the EU and US expressing concerns about Nvidia's dominance in AI chips and Microsoft's close relationship with OpenAI. Microsoft has tightly integrated OpenAI's services into its Windows and Copilot AI platforms -- a bet that the capabilities will help drive growth. Apple has existing ties with OpenAI as well. The iPhone maker is adding ChatGPT to its new suite of AI features, called Apple Intelligence. The company also was slated to take a board observer seat at OpenAI -- alongside Microsoft -- but those plans were dropped in July. Nvidia, meanwhile, supplies the critical infrastructure needed to develop and run AI tools like ChatGPT. It's the biggest maker of so-called AI accelerators, sales of which have soared over the past two years. In Nvidia's latest quarterly report, released on Wednesday, revenue more than doubled to $30 billion. It predicted even bigger sales in the current quarter, topping the average analysts estimates, though investors have grown so accustomed to blowout results that the shares still declined. OpenAI Chief Financial Officer Sarah Friar told employees in a memo Wednesday that the company was seeking fresh capital, without giving details, according to people familiar with the matter. The company has been in discussions to raise funding at a valuation at or above $100 billion since at least December, Bloomberg has reported. The financing would bolster one of the world's most valuable venture-backed startups. The runaway success of ChatGPT also has kicked off an arms race among tech companies, which are integrating AI technology across their products and funding other promising startups. In her memo to employees, Friar said that OpenAI would use the financing to acquire more computing power and fund other operating expenses, the people said.

Apple, Nvidia in talks to invest in ChatGPT-maker OpenAI's $100 billion funding round - Times of India

Apple and Nvidia are in discussions to invest in OpenAI as part of a new funding round that could value the artificial intelligence startup at over $100 billion, according to people familiar with the matter. The potential investments by the tech giants would join a round led by venture capital firm Thrive Capital, which is set to put in about $1 billion. The funding talks, first reported by The Wall Street Journal and Bloomberg, come as OpenAI grapples with soaring costs and seeks to bolster its financial position. Microsoft, already OpenAI's largest backer, is also in talks to participate in the new round, sources said. OpenAI, creator of the popular ChatGPT chatbot, is reportedly seeking fresh capital to fund computing power and other operating expenses, as per a memo to employees from CFO Sarah Friar cited by The Wall Street Journal. The company's rapid growth and hefty spending on AI development have strained its finances, and the company could exhaust its cash reserves this year, according to The Information. If completed, the funding round would make OpenAI one of the world's most valuable venture-backed startups. The $100 billion valuation under discussion represents a significant jump from the $80 billion valuation achieved just eight months ago, as reported by The New York Times. For Apple, an investment would cement its ties to OpenAI as the iPhone maker prepares to integrate ChatGPT into its new AI features. FYI, Apple is not paying OpenAI any money for putting ChatGPT onto iPhone and its other devices. Nvidia, meanwhile, supplies critical chips powering OpenAI's technology. If the investment goes through, Apple, Nvidia and Microsoft could get a seat on OpenAI's board. However, this concentration of power is drawing increased regulatory scrutiny. Both US and EU officials have expressed concerns about Nvidia's dominance in AI chips and Microsoft's close relationship with OpenAI, as noted by Bloomberg. Apple and Microsoft had to leave their advisory roles on the board of directors, as government started questioning their positions. OpenAI's fundraising efforts come amid an AI arms race, with tech giants racing to integrate the technology into their products. The company's annual spending on AI training and inference is expected to reach $7 billion, far outpacing its projected revenue. The TOI Tech Desk is a dedicated team of journalists committed to delivering the latest and most relevant news from the world of technology to readers of The Times of India. TOI Tech Desk's news coverage spans a wide spectrum across gadget launches, gadget reviews, trends, in-depth analysis, exclusive reports and breaking stories that impact technology and the digital universe. Be it how-tos or the latest happenings in AI, cybersecurity, personal gadgets, platforms like WhatsApp, Instagram, Facebook and more; TOI Tech Desk brings the news with accuracy and authenticity.

Apple, NVIDIA in talks to Raise Funding for OpenAI

Courtesy of the fundraise, OpenAI could continue its reign in the AI industry with a whopping valuation of $100 Billion OpenAI, ChatGPT maker, is expected to raise funding from Apple and NVIDIA at a valuation of $100 billion. Per reports, Thrive Capital, an NYC based VC firm, will lead the round. OpenAI is currently valued at $86 billion. Earlier this year, Microsoft, OpenAI's oldest, and most significant strategic partner, valued them at $30 billion. While they are still in the talks to participate in the upcoming fundraise, the details are unclear. Apple and OpenAI could see this fundraise as a new way to strengthen their existing relationship that saw a new height with the "Apple Intelligence" initiative where OpenAI's AI features were made a core part of apple's products. This acquisition is also telling about OpenAI's value within the apple ecosystem, and how Tim Cook, CEO of Apple, wants an inside on OpenAI's future innovations. NVIDIA is optimistic in OpenAI commitment to "Humanity, Computing and AI." In line with this, earlier this year, Jensen Huang, NVIDIA's CEO, personally hand-delivered the first NVIDIA DGX H200 to OpenAI. What does Open AI's future hold? OpenAI's growth since the launch of 2022 has been record breaking. It has sparked a reckoning in the AI community, especially among investors and VC firms, who are constantly in the race of staying on top of cutting edge AI driven technologies and capturing market share. On 29th August, OpenAI reported that ChatGPT has surpassed more than 200 million active users. Fortune 500 companies are heavily dependent on OpenAI, with around 92% of them using the latter's products, per an OpenAI spokesperson. According to her, the API usage has also doubled since the launch of GPT-4o mini. OpenAI's recent collaboration with AI Safety Institute also highlights their commitment to advance safe and trustworthy AI innovation for all.

NVIDIA to join Apple, Microsoft funding round for OpenAI that values the AI startup at $100B+

NVIDIA is thinking about joining the new funding round for OpenAI, that would value the AI startup at over $100 billion, reports The Wall Street Journal. According to "people familiar with the matter" the new valuation would peg OpenAI at worth over $100 billion, and would see NVIDIA joining US-based tech giants Apple and Microsoft who are also reportedly in talks to participate in the funding round. Thrive Capital would be leading the funding round, investing around $1 billion, while two sources of the WSJ said that NVIDIA discussed investing about $100 million into OpenAI. The Wall Street Journal reached out to representatives from NVIDIA, Apple, Microsoft, OpenAI, and Thrive, but all of them declined to comment (no surprise). In a memo sent on Wednesday, OpenAI Chief Financial Officer Sarah Friar told staffers that the company was looking for fresh capital, without providing more details, said "people familiar with the matter" reports The Wall Street Journal. Apple has massively invested into using ChatGPT for its own in-house Apple Intelligence serrvice, which will be rolling out to its new iPhone 16 family that launches next month. Microsoft is already in deep with OpenAI, and we all know NVIDIA's various AI GPUs are powering OpenAI. The new financing round would bolster one of the world's most valuable venture-backed startups, with the success of ChatGPT seeing every company on the planet want to dive into the AI hype.