Nvidia Corp., the largest chipmaker globally, is reportedly in talks to participate in a funding round for OpenAI, which could value the AI company at over $100 billion, according to sources familiar with the situation.
Apple Inc. and Microsoft Corp. are also in discussions to join the financing round, according to sources who requested anonymity due to the private nature of the talks. Thrive Capital is expected to lead the round with a $1 billion investment, as reported by Bloomberg earlier this week. Nvidia is considering contributing around $100 million, according to two of the sources.
If these talks progress, it would result in the three most valuable tech companies—Nvidia, Apple, and Microsoft—supporting OpenAI, the creator of the innovative ChatGPT chatbot. Microsoft is already OpenAI’s largest investor, with approximately $13 billion in funding. Representatives from Nvidia, Apple, Microsoft, OpenAI, and Thrive Capital declined to comment on the matter.
The growing influence of Big Tech over artificial intelligence is attracting increased scrutiny from regulators in the EU and US, particularly regarding 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 is incorporating ChatGPT into its new AI feature set called Apple Intelligence. The tech giant was also expected to take a board observer seat at OpenAI alongside Microsoft, but those plans were abandoned in July.
Nvidia provides the essential infrastructure required to develop and operate AI tools like ChatGPT. As the leading producer of AI accelerators, Nvidia has seen a significant surge in sales over the past two years.
In its latest quarterly report released on Wednesday, Nvidia reported that revenue more than doubled to $30 billion. The company forecasted even higher sales for the current quarter, exceeding analysts’ average estimates. However, despite the strong results, shares declined as investors had already anticipated impressive earnings.
OpenAI’s Chief Financial Officer, Sarah Friar, informed employees in a memo on Wednesday that the company is seeking 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 secure funding at a valuation of $100 billion or more, as previously reported by Bloomberg.
The new funding would strengthen OpenAI, one of the world’s most valuable venture-backed startups. The rapid success of ChatGPT has ignited an arms race among tech companies, which are now incorporating AI technology into their products and investing in other promising AI startups.
In her memo to employees, Friar mentioned that OpenAI plans to use the funding to secure additional computing power and cover other operational costs, according to sources. The Wall Street Journal had previously reported on the discussions with Apple.
—With contributions from Shirin Ghaffary and Ian King.