Reports: Apple and Nvidia in Negotiations to Participate in OpenAI’s Funding Round

Apple and Nvidia are reportedly in discussions to join a new funding round for OpenAI, potentially elevating the ChatGPT developer’s valuation to over $100 billion (approximately Rs. 7,870 crore). This development, highlighted in media reports on Thursday, signifies a major endorsement for OpenAI, which has rapidly grown in prominence within the artificial intelligence sector.

According to The Wall Street Journal, Apple has shown interest in participating in this funding round, though the company has not yet responded to requests for comment from Reuters. Similarly, Bloomberg News has reported that Nvidia is considering involvement in the investment round. The exact investment amounts from Apple and Nvidia have not been disclosed at this time.

The funding round, which is expected to be led by venture capital firm Thrive Capital with an investment of around $1 billion (approximately Rs. 78.70 crore), represents a significant financial boost for OpenAI. Thrive Capital’s involvement was confirmed a day prior, according to The Wall Street Journal. However, Apple, OpenAI, and other involved parties like Thrive Capital, Nvidia, and Microsoft have not yet provided official comments on the reports.

Apple’s growing interest in OpenAI reflects the increasing integration of artificial intelligence into its products. The company incorporated OpenAI’s ChatGPT into its ecosystem in June under the “Apple Intelligence” initiative, aiming to enhance the functionality of its devices. Additionally, Apple is reported to be gaining an observer role on OpenAI’s board, further solidifying its strategic alignment with the AI firm.

Microsoft, which is already OpenAI’s largest strategic investor with over $10 billion (approximately Rs. 787 crore) invested, is also anticipated to participate in the current funding round. This aligns with Microsoft’s ongoing commitment to integrating advanced AI capabilities into its services and platforms.

The high valuation of OpenAI can be attributed to the AI arms race that began with the launch of ChatGPT in late 2022. The introduction of this technology has spurred significant investments from various companies across industries, all vying to leverage AI advancements to maintain competitive advantage and capture market share.

As discussions and negotiations continue, the final details of the investment amounts and the participants’ roles will be closely watched by the tech industry and investors alike. The outcome of this funding round could further accelerate the development and deployment of AI technologies, shaping the future of the industry.