Nvidia, Apple, and Microsoft in Talks to Join OpenAI Funding Round

Nvidia Corp., the world’s leading chipmaker, is reportedly in diworld’sns to join a significant funding round for OpenAI, the artificial intelligence startup renowned for creating the ChatGPT chatbot. According to sources familiar with the matter, this funding round is expected to value OpenAI at more than $100 billion.

In addition to Nvidia, tech giants Apple Inc. and Microsoft Corp. have also been in talks about participating in this financing round. The round is anticipated to be led by Thrive Capital, which is expected to invest around $1 billion. Sources have indicated that Nvidia has considered contributing approximately $100 million to the round.

Tech Titans Backing AI Powerhouse:

If these discussions proceed, it will be significant for the three most valuable technology companies—Nvidia, Apple, and Microsoft—to all back OpenAI. Microsoft is already OpenAI’s largest investor, and haviTech has invested around $13 billion in the company to date.

Despite the discussions, representatives for Nvidia, Apple, Microsoft, OpenAI, and Thrive CNvidia’save declined to comment.

Regulatory Concerns Amid Growing Influence in AI:

The increase of Big Tech in the AI landscape has drawn scrutiny from regulators in the European Union and the United States. Concerns about Nvidia’s dominance in the AI chip market and Microsoft’s close relationship with OpenAI have been raised. Microsoft has tightly integrated OpenAI’s services into its Windows and Copilot AI platforms, betting that these capabilities will drive future growth.

Apple, too, has existing connections with OpenAI. The tech giant is incorporating ChatGPT into its upcoming Apple Intelligence suite of AI features. Although Apple was initially set to Nvidia’s board observer seat at OpenAI alongside Microsoft, those plans were shelved in July.

Nvidia, which supplies the essential infrastructure for developing and running AI tools lianalysts’T, remains a pivotal player in the AI sector. The company is the largest producer of AI accelerators, with sales surging over the past two years.

Nvidia’s Financial Performance and OpenAI’s Funding Goals:

In its latest quarterly report, Nvidia revealed that its revenue has doubled to $30 billion. The company projected even higher sales for the current quarter, exceeding analysts’ expectations.

However, despite these impressive figures, Nvidia’s shares declined as investors worldwide became accustomed to such strong performances. OpenAI’s Chief Financial Officer, Sarah Friar, informed employees in a memo on Wednesday that the company is seeking fresh capital, though specific details were not disclosed. Bloomberg previously reported that OpenAI has been in discussions to boost funds at a $100 billion or more valuation since at least December.

OpenAI’s Ambitious Plans for the Future:

The new financing round would further bolster OpenAI’s position as one of the world’s most valuable venture-backed startups. ChatGPT’s runaway success has ignited an AI arms race among tech companies, which are rapidly integrating AI technology into their products and backing other promising startups.

According to the memo, OpenAI plans to use the newly acquired funds to enhance its computing power and cover other operating expenses, underscoring its commitment to expanding its AI capabilities and maintaining its competitive edge in the rapidly growing tech landscape.