In a significant development in the AI industry, tech giants Apple, Nvidia, and Microsoft are reportedly in talks to invest in OpenAI’s latest funding round, which could value the ChatGPT maker at over $100 billion. This move underscores the growing importance of AI in the tech sector and the fierce competition among major players to secure their positions in this rapidly evolving field.The funding round is being led by Thrive Capital, which is set to invest around $1 billion. Nvidia, the leading manufacturer of AI-accelerators, has reportedly discussed investing $100 million. Microsoft, already OpenAI’s largest strategic investor with over $10 billion invested, is also expected to participate.This potential investment comes at a time when OpenAI’s technology is becoming increasingly crucial for these tech giants. Apple integrated ChatGPT into its devices in June as part of its ‘Apple Intelligence’ initiative, while Microsoft has incorporated OpenAI’s services into its Windows and Copilot AI platforms.OpenAI’s Chief Financial Officer, Sarah Friar, stated in a memo that the company is seeking fresh capital to acquire more computing power and fund other operating expenses. This financing would bolster OpenAI’s position as one of the world’s most valuable venture-backed startups.Meanwhile, Nvidia, a key player in the AI hardware space, announced a $50 billion share buyback program. This comes despite its stock falling 4% in extended trading following its Q2 earnings report, which showed a 122% year-over-year increase in sales to $30.04 billion. The company’s ability to maintain its rapid growth rate is being questioned by some analysts.The intense interest in OpenAI and the broader AI sector reflects the ‘arms race’ among tech companies to integrate AI technology across their products and fund promising startups. This race was sparked by the launch of ChatGPT in late 2022, which has prompted companies across various sectors to invest billions to stay ahead of the competition and gain market share.
Key points
- Apple, Nvidia, and Microsoft are in talks to invest in OpenAI’s new funding round, potentially valuing the company at over $100 billion.
- The investment reflects the growing importance of AI in the tech sector and the fierce competition among major players.
- OpenAI plans to use the funds for computing power and operating expenses.
- Nvidia announced a $50 billion share buyback program despite concerns about maintaining its rapid growth rate.
Contradictions👾While Nvidia is considering investing in OpenAI, it’s also facing scrutiny over its own growth sustainability, with its stock price falling despite strong earnings.
