Nvidia, Apple, and Microsoft are reportedly exploring opportunities to invest in OpenAI, the company behind ChatGPT. The investment is part of a new funding round featuring Thrive Capital, which could give OpenAI a valuation of more than $100 billion, the New York Times reported.
The funding round led by Thrive Capital, with an expected investment of around $1 billion, may have all three tech giants supporting OpenAI. Microsoft has been a key player in OpenAI’s growth, owning 49% of the company’s income since injecting $13 billion in 2019. This has enabled Microsoft to integrate OpenAI in its products, such as Azure, the Edge browser, and the Bing search engine.
Nvidia and Apple unveil AI plans and seek market dominance
In June, at the annual Worldwide Developer Conference (WWDC), Apple announced that it would integrate OpenAI’s ChatGPT into its devices like iPads, iPhones, Vision Pro headsets, and Macbooks.
Nvidia, which controls about 80% of the market for AI chips, could also benefit from the cooperation with OpenAI. If Nvidia is able to remain the primary hardware supplier in the development of AI, this investment will only help further solidify its position in the market. OpenAI needs high-performance computing, which is something that Nvidia does best, and therefore, this partnership is mutually beneficial for both companies.
OpenAI’s financial stability has come under question. It has been reported that the company intends to invest about $7 billion in AI training. Additionally, $1.5 billion has been set for hiring in the next year.
OpenAI reshapes governance structure
OpenAI’s governance structure has also evolved in the past few months, especially regarding funding and partnership plans. Microsoft, which had a seat on the board of OpenAI as an observer, left this position in July. This comes after the European Union and United States antitrust authorities have looked at how Microsoft and OpenAI have partnered in the AI sector amid other competition issues.
Apple, which was expected to be appointed to the OpenAI board in a similar manner following the June announcement, has also not sought this position. Rather than the usual partnership model, OpenAI has decided to have frequent meetings with strategic partners like Microsoft, Apple, Thrive Capital, and Khosla Ventures.
OpenAI has been exploring funding options since at least December, with the goal of securing a valuation at or above $100 billion. The success of ChatGPT has sparked an AI arms race among tech companies. As reported by Cryptopolitan, ChatGPT has gained 200 million weekly active users and has almost doubled within a year.
