Apple, Nvidia, and Microsoft Consider Big Investments in OpenAI

Key Takeaways

Apple and Nvidia are looking to invest in OpenAI, potentially valuing the company at over $100 billion.

Microsoft and Thrive Capital are leading this major funding round.

OpenAI plans to use the new funds to improve its computing power and operations.

Apple and Nvidia are showing interest in joining OpenAI’s latest multibillion-dollar funding round, alongside Microsoft and Thrive Capital. This new round of investment could push OpenAI’s value past $100 billion, highlighting the startup's importance in the AI industry.

Nvidia, known for being the largest chipmaker in the world, is in talks to contribute to this funding. Apple and Microsoft are also considering getting involved, according to sources. This investment would strengthen their ties with OpenAI, a key player in the competitive AI space.

Thrive Capital is taking the lead in this funding effort, putting in about $1 billion. Microsoft is expected to join in, and Nvidia might invest around $100 million. However, it’s still unclear how much Apple and Microsoft will contribute.

OpenAI, famous for creating ChatGPT, could secure backing from these major tech giants if everything goes as planned. The company plans to use the new funds to enhance its computing infrastructure and cover ongoing operational costs, further solidifying its status as one of the world’s most valuable AI startups.

Microsoft and Apple’s Partnerships with OpenAI Microsoft has been a key investor in OpenAI, holding a 49% share of its profits after investing around $13 billion since 2019. Microsoft has deeply integrated OpenAI’s technologies into its Copilot AI and Windows platforms, hoping these advancements will fuel its growth.

Apple, which has been slower to enter the AI market, recently named OpenAI as its first official partner for Apple Intelligence. This collaboration is part of Apple’s strategy to integrate AI throughout its operating system, improving Siri, offering text proofreading, and creating custom emojis. While Apple will use its own technology for some AI tasks, it will rely on OpenAI’s ChatGPT for more complex functions like generating written messages.

Apple’s interest in investing in OpenAI signals its determination to stay competitive in the AI race. Besides OpenAI, Apple is also considering partnerships with other AI players like Google’s Gemini, Meta Platforms, and startups like Anthropic and Perplexity.

Although Apple usually avoids investing in startups, it has made exceptions before, such as its $1 billion investment in Chinese ride-hailing service DiDi Chuxing in 2016 and another $1 billion in Japan’s SoftBank Vision Fund in 2017. Apple is also ramping up its own AI capabilities and is expected to unveil new tools at its upcoming iPhone event.

Nvidia and OpenAI Collaboration Nvidia, a leading supplier of chips for AI models like ChatGPT, has maintained a close partnership with OpenAI. The company is a major force in producing AI accelerators, with its sales booming over the last two years. Recently, Nvidia has heavily invested in the AI sector, supporting companies like Inflection AI and Databricks, as well as smaller startups focused on AI drug discovery and robotics.

Nvidia’s latest quarterly report, released on August 28, showed revenue exceeding $30 billion, with predictions for even higher sales. Despite a brief drop in Nvidia’s stock prices, most analysts believe this decline will be short-lived.

As Big Tech’s influence in AI continues to grow, it’s catching the eye of regulators, particularly concerning Nvidia’s dominance in chip production and Microsoft’s close ties with OpenAI.