Tech Giants Eye OpenAI Investment as Valuation Soars Past $100 Billion

In a significant development in the artificial intelligence (AI) sector, tech giants Apple and Nvidia are reportedly in discussions to invest in OpenAI’s latest funding round, which could potentially value the AI startup at over $100 billion. This news, first reported by Bloomberg and The Wall Street Journal, citing sources familiar with the matter, marks a pivotal moment in the AI industry’s competitive landscape.

The funding round, led by investment firm Thrive Capital with a reported $1 billion commitment, has attracted attention from some of the biggest names in tech. Microsoft, which already owns a 49% stake in OpenAI following a $13 billion investment since 2019, is also expected to participate in this new round.

For Apple, this potential investment represents a departure from its typical strategy. The iPhone maker rarely invests in startups, usually preferring to acquire companies outright or develop technologies in-house. However, this move aligns with Apple’s recent efforts to catch up in the AI race, following its June announcement of a partnership with OpenAI to integrate ChatGPT into its new AI features suite, Apple Intelligence.

Nvidia’s interest in the funding round is equally noteworthy. As the world’s largest chipmaker and a key supplier of the computational power needed for AI development, Nvidia’s potential investment in OpenAI could further solidify its position in the AI ecosystem.

The valuation being discussed – over $100 billion – represents a significant increase from OpenAI’s previous valuation of around $80 billion just eight months ago. This rapid appreciation underscores the explosive growth and intense investor interest in AI technologies since the launch of ChatGPT in late 2022.

OpenAI’s Chief Financial Officer, Sarah Friar, reportedly informed employees about the company’s plans to seek fresh capital, indicating that the funds would be used to acquire more computing power and cover other operating expenses.

This funding round comes at a time when scrutiny over Big Tech’s influence in AI is intensifying. Regulators in both the EU and US have expressed concerns about Nvidia’s dominance in AI chips and Microsoft’s close relationship with OpenAI.

While representatives from Apple, Nvidia, Microsoft, OpenAI, and Thrive Capital have declined to comment on these reports, the tech industry and investors alike are closely watching this unfolding story, which could have far-reaching implications for the future of AI.