Tech giants Apple, Nvidia, and Microsoft are reportedly in talks to invest in OpenAI’s latest funding round, which could value the AI firm 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 $13 billion invested since 2019, 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 growth has been remarkable, with the company announcing that ChatGPT now has 200 million weekly users, double the number from a year ago. Additionally, 92% of Fortune 500 companies are now using OpenAI’s technology. However, the company faces significant financial challenges, with annualized revenue of $3.4 billion and a projected loss of $5 billion by year-end.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.Despite the enthusiasm, concerns remain about the rapid development of AI technology. OpenAI CEO Sam Altman has warned about the potential risks of AI, including the possibility of human extinction. This underscores the need for responsible development and regulation of AI technologies as they become increasingly integrated into various aspects of business and daily life.
Key points
- Apple, Nvidia, and Microsoft are in talks to invest in OpenAI, potentially valuing the company at over $100 billion.
- OpenAI’s ChatGPT now has 200 million weekly users, double from a year ago, and is used by 92% of Fortune 500 companies.
- The investment reflects an ongoing ‘AI arms race’ among tech giants, sparked by ChatGPT’s launch in late 2022.
- OpenAI faces financial challenges despite growth, with a projected loss of $5 billion by year-end.
Contradictions👾While most sources report OpenAI’s valuation at around $100 billion, there are slight discrepancies in the exact figures and timelines of previous valuations.
