OpenAI, the trailblazing artificial intelligence startup known for its revolutionary ChatGPT, is set to attract significant investment from three of the most valuable technology companies: Nvidia, Apple, and Microsoft. This new funding round, which could value OpenAI at over $100 billion, underscores the pivotal role the AI startup plays in the tech industry.
The proposed funding round is expected to be led by Thrive Capital, which is poised to invest around $1 billion, according to Bloomberg reports. Nvidia, the world’s largest chipmaker, is in discussions to contribute approximately $100 million to the round. Both Apple and Microsoft have also been considering participation, with the specifics of their potential investments still under negotiation.
If these discussions come to fruition, it would mark a notable endorsement from three of the biggest names in technology. Microsoft, already OpenAI’s largest investor with around $13 billion in funding, has integrated OpenAI’s AI tools into its Windows and Copilot platforms, aiming to enhance its product offerings and drive future growth. Apple, which has recently intensified its focus on AI, plans to incorporate OpenAI’s technologies into its upcoming iPhone operating system. Nvidia’s involvement is also crucial, given its dominance in producing AI accelerators, the hardware essential for running and developing advanced AI tools.
The move comes amidst growing scrutiny of Big Tech’s influence over AI. Regulators in both the EU and the US are increasingly concerned about Nvidia’s market power in AI chips and Microsoft’s close relationship with OpenAI. These concerns are compounded by Microsoft’s extensive integration of OpenAI’s services, which has positioned it as a central player in the AI space.
Apple’s engagement with OpenAI includes efforts to weave ChatGPT into its suite of AI features, branded as Apple Intelligence. Although Apple was initially set to take a board observer seat at OpenAI, alongside Microsoft, those plans were shelved in July.
Nvidia’s latest quarterly report highlighted its soaring revenue, which more than doubled to $30 billion, driven by strong sales of AI accelerators. Despite exceeding analysts’ expectations, Nvidia’s stock saw a decline, reflecting market volatility and high investor expectations.
OpenAI Chief Financial Officer Sarah Friar informed employees in a recent memo that the company is seeking additional capital. The funds are intended to expand computing capabilities and cover other operational expenses. Since December, OpenAI has been working on raising capital at or above its $100 billion valuation.
The upcoming financing round will further solidify OpenAI’s position as one of the world’s most valuable venture-backed startups. The success of ChatGPT has sparked an arms race in the tech industry, with companies racing to integrate AI technology and support emerging startups.OpenAI, the trailblazing artificial intelligence startup known for its revolutionary ChatGPT, is set to attract significant investment from three of the most valuable technology companies: Nvidia, Apple, and Microsoft. This new funding round, which could value OpenAI at over $100 billion, underscores the pivotal role the AI startup plays in the tech industry.
The proposed funding round is expected to be led by Thrive Capital, which is poised to invest around $1 billion, according to Bloomberg reports. Nvidia, the world’s largest chipmaker, is in discussions to contribute approximately $100 million to the round. Both Apple and Microsoft have also been considering participation, with the specifics of their potential investments still under negotiation.
If these discussions come to fruition, it would mark a notable endorsement from three of the biggest names in technology. Microsoft, already OpenAI’s largest investor with around $13 billion in funding, has integrated OpenAI’s AI tools into its Windows and Copilot platforms, aiming to enhance its product offerings and drive future growth. Apple, which has recently intensified its focus on AI, plans to incorporate OpenAI’s technologies into its upcoming iPhone operating system. Nvidia’s involvement is also crucial, given its dominance in producing AI accelerators, the hardware essential for running and developing advanced AI tools.
The move comes amidst growing scrutiny of Big Tech’s influence over AI. Regulators in both the EU and the US are increasingly concerned about Nvidia’s market power in AI chips and Microsoft’s close relationship with OpenAI. These concerns are compounded by Microsoft’s extensive integration of OpenAI’s services, which has positioned it as a central player in the AI space.
Apple’s engagement with OpenAI includes efforts to weave ChatGPT into its suite of AI features, branded as Apple Intelligence. Although Apple was initially set to take a board observer seat at OpenAI, alongside Microsoft, those plans were shelved in July.
Nvidia’s latest quarterly report highlighted its soaring revenue, which more than doubled to $30 billion, driven by strong sales of AI accelerators. Despite exceeding analysts’ expectations, Nvidia’s stock saw a decline, reflecting market volatility and high investor expectations.
OpenAI Chief Financial Officer Sarah Friar informed employees in a recent memo that the company is seeking additional capital. The funds are intended to expand computing capabilities and cover other operational expenses. Since December, OpenAI has been working on raising capital at or above its $100 billion valuation.
The upcoming financing round will further solidify OpenAI’s position as one of the world’s most valuable venture-backed startups. The success of ChatGPT has sparked an arms race in the tech industry, with companies racing to integrate AI technology and support emerging startups.
hii Aditi Sahu this side..
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