OpenAI’s latest funding round has attracted the attention of the top three most valuable tech companies, highlighting its critical role in the AI industry. This interest emphasizes OpenAI’s influence and importance within the broader tech landscape. The startup continues to be a key player in driving AI advancements.
Nvidia Corp, the leading chipmaker globally, is reportedly considering joining a funding round that would value OpenAI at over $100 billion, according to sources familiar with the discussions. Apple Inc. and Microsoft Corp. have also been in talks about participating in this financing, said the sources, who requested anonymity due to the private nature of the discussions.
The proposed funding round, led by Thrive Capital with a $1 billion investment, may also include Nvidia, which has discussed investing around $100 million, according to sources. If these talks proceed, it would bring together three major tech giants—Nvidia, Apple, and Microsoft—to back OpenAI, the creator of ChatGPT. Microsoft is already OpenAI’s largest investor, with a $13 billion stake; Apple is relying on OpenAI to integrate AI into future iPhone software; and Nvidia stands to benefit from the increasing demand for AI tools powered by its technology.
Representatives from Nvidia, Apple, Microsoft, OpenAI, and Thrive Capital all declined to comment on the matter.
The growing influence of Big Tech in artificial intelligence is attracting increased scrutiny, with regulators in the EU and US raising concerns about Nvidia’s dominance in AI chips and Microsoft’s close ties with OpenAI. Microsoft has deeply integrated OpenAI’s services into its Windows and Copilot AI platforms, betting that these capabilities will fuel future growth.
Apple also has connections with OpenAI, as it plans to incorporate ChatGPT into its new AI feature set, Apple Intelligence. The company was expected to take a board observer seat at OpenAI alongside Microsoft, but those plans were scrapped in July.
Nvidia plays a crucial role by providing the infrastructure needed to develop and operate AI tools like ChatGPT, making it the leading manufacturer of AI accelerators, whose sales have surged in the past two years. In its latest quarterly report released on Wednesday, Nvidia reported that revenue more than doubled to $30 billion, and it forecasted even higher sales for the current quarter, surpassing analysts’ expectations. However, despite these impressive results, the company’s shares still declined as investors had already anticipated strong performance.
OpenAI’s Chief Financial Officer, Sarah Friar, informed employees in a memo on Wednesday that the company is pursuing new funding, though she did not provide specifics, according to sources familiar with the matter. Since at least December, OpenAI has been in talks to raise funds at a valuation of $100 billion or more, as reported by Bloomberg.
The financing would strengthen one of the world’s most valuable venture-backed startups. The rapid success of ChatGPT has sparked a competitive race among tech companies to integrate AI technology into their products and invest in other promising AI startups.
In her memo to employees, Friar stated that OpenAI plans to use the financing to expand its computing power and cover various operating expenses, according to sources.
The Wall Street Journal had previously reported on the ongoing discussions with Apple.