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Apple and Nvidia in Talks to Invest in OpenAI’s $100B Funding Round

Author

Alicia Shapiro
August 30, 2024 • Estimated Reading Time: 3 minutes

A futuristic financial landscape featuring the Apple, Nvidia, and OpenAI logos interconnected by glowing lines and data streams. The OpenAI logo is prominently displayed alongside Apple and Nvidia, symbolizing their potential partnership. The background includes abstract representations of AI technology and financial growth, with a digital graph indicating a sharp rise in value. The image conveys the concept of a significant investment that could reshape the AI industry, highlighting the collaboration between these major tech companies

Image Source: ChatGPT-4o

Apple and Nvidia in Talks to Invest in OpenAI’s $100B Funding Round

The tech giants Apple and Nvidia are reportedly in talks to participate in OpenAI’s upcoming funding round, which could be one of the largest in the industry.

Potential Investment from Apple and Nvidia

According to reports from The Wall Street Journal, Apple is in discussions to invest in OpenAI, potentially marking a significant partnership. Bloomberg later added that Nvidia has also been in discussions to join the funding round. The round, reportedly led by Thrive Capital, could value OpenAI at more than $100 billion. However, it remains unclear how much Apple might contribute to the investment.

Strategic Reasons for the Investment

Apple’s interest in OpenAI is likely tied to its plans to integrate ChatGPT into iOS later this year, enhancing features such as Siri and text processing. Previously, there were discussions about Apple’s Phil Schiller joining OpenAI’s board, although those plans were reportedly shelved. Nvidia’s potential involvement is also strategic, as OpenAI heavily relies on Nvidia’s GPUs to power its AI models and services.

Microsoft’s Continued Partnership with OpenAI

Bloomberg also reported that Microsoft is in talks to join this funding round. Microsoft has a history of investing in OpenAI, with a $1 billion investment in 2019 followed by a multibillion-dollar investment in 2023. This ongoing partnership has been crucial in advancing OpenAI’s technology.

Impact on Competitors and the AI Landscape

If Apple and Nvidia proceed with the investment, it could increase pressure on competitors like Alphabet, which owns Google. OpenAI has already begun exploring AI-powered search features, positioning itself as a potential competitor to Google’s search platform. Alphabet’s shares dropped by 0.7% following these developments, indicating market concern over the increasing competition.

Awaiting Official Responses

As of now, Apple and OpenAI have not responded to requests for comment. Nvidia and Microsoft have both declined to comment on the matter.