Apple and Nvidia Consider Investing in OpenAI Valued at $100 Billion

Apple and Nvidia Explore Investment in OpenAI

In a significant move within the tech industry, Apple and Nvidia are reportedly in negotiations to invest in OpenAI. This potential agreement could elevate the valuation of the San Francisco-based artificial intelligence start-up to an impressive $100 billion, as disclosed by three sources familiar with the ongoing discussions, who chose to remain anonymous.

The lead investor in this prospective deal would be Thrive Capital, which is expected to contribute around $1 billion to OpenAI. If finalized, this valuation would represent a notable increase of approximately $20 billion compared to OpenAI’s valuation from eight months ago. Both Nvidia and Apple have opted not to comment on the matter.

OpenAI catalyzed the current A.I. revolution with the launch of its highly acclaimed online chatbot, ChatGPT, in late 2022. Following this groundbreaking release, investors poured tens of billions of dollars into OpenAI and other companies pursuing similar technological advancements. However, in recent months, the fervor among investors has somewhat diminished, particularly as several notable start-ups have been absorbed by tech giants like Google, Amazon, and Microsoft. Despite this trend, OpenAI has managed to retain its independence, focusing on the development and commercialization of its own technologies and products.

Since 2019, Microsoft and various other investors have collectively injected over $13 billion into OpenAI. This funding is critical, as the company requires substantial financial resources to access the computing power necessary for its ambitious A.I. initiatives. Nvidia, known for supplying much of this essential computing power through specialized chips designed for A.I. development, has witnessed remarkable growth over the past 18 months. Notably, on Wednesday, Nvidia reported that its sales and profits more than doubled in the three months leading up to July.

Earlier this year, Thrive Capital spearheaded a deal that valued OpenAI at over $80 billion. In that instance, OpenAI did not issue new shares but instead allowed its employees to sell their existing shares. The new proposed deal would also enable other current shareholders to divest their shares.

Bloomberg was the first to report Nvidia’s involvement in these discussions, while The Wall Street Journal highlighted Apple’s participation. It’s worth noting that The New York Times previously filed a lawsuit against OpenAI and Microsoft for copyright infringement, alleging that both companies utilized news articles to train their models without obtaining permission.

While industry leaders like Google, Microsoft, Meta, and OpenAI have been at the forefront of A.I. development for years, Apple has found itself lagging behind. Recently, however, the tech giant announced plans to enable customers to access OpenAI’s chatbot on their iPhones. In June, Apple unveiled its strategy to incorporate generative A.I. into its devices, a technology it refers to as Apple Intelligence. This development aims to enhance its Siri virtual assistant, streamline message prioritization, and provide writing tools that proofread or suggest sentences for emails, notes, and text messages.

The company is anticipated to share more insights regarding this innovative technology on September 9, during an event slated to unveil its latest iPhones at its headquarters in Cupertino, California.