NVIDIA and Apple are in discussions to join a multibillion-dollar funding round for OpenAI, according to a new report from Bloomberg. If true, this would see the ChatGPT maker being backed by the three most valuable technology companies in the world.
The funding round, reportedly led by existing shareholder Thrive Capital, is expected to value OpenAI at over $100 billion, up from its current $86 billion valuation. Microsoft, already a major investor with $13 billion committed, is also expected to participate.
OpenAI's skyrocketing valuation reflects the intense interest in generative AI technologies. The company is working on several ambitious projects, including new reasoning AI capabilities and its next-generation large language model codenamed "Orion".
Chris McKay
NVIDIA's potential involvement adds an intriguing layer to the deal. As the dominant force in GPU technology, NVIDIA already plays a crucial role in OpenAI's operations. The AI company relies heavily on NVIDIA's hardware and software to train and run its models, spending billions annually on NVIDIA-equipped servers.
However, reports have surfaced that OpenAI is exploring the development of its own AI chips, a move that could potentially reduce its dependence on NVIDIA's technology. This initiative underscores the strategic importance of chip technology in the AI race.
Despite this, NVIDIA's interest in investing isn't entirely surprising. The GPU giant has been actively investing in AI startups, seeking to strengthen its position in the rapidly evolving AI ecosystem. An investment in OpenAI could serve to deepen the ties between the two companies, potentially influencing the direction of AI hardware development.
This potential partnership highlights the intricate web of collaboration and competition in the AI industry, where today's suppliers might be tomorrow's competitors, and strategic investments can reshape the technological landscape.
For Apple, this investment would solidify its partnership with OpenAI. At WWDC in June, the iPhone maker announced plans to integrate ChatGPT into its new Apple Intelligence suite across iOS, iPadOS and MacOS.
One of the most anticipated features is the enhanced Siri, Apple’s virtual assistant, which will now have the ability to tap into ChatGPT’s intelligence. This enhancement allows Siri to handle more complex queries by accessing the vast knowledge base of ChatGPT.
Chris McKay
The funding comes as OpenAI looks to build ever larger and more capable models. In a memo to employees on Wednesday, CFO Sarah Friar informed employees of the new funding without providing any details.
While these discussions are still ongoing, the potential involvement of NVIDIA, Apple, and Microsoft underscores the growing influence and competition among tech giants in the AI space. For OpenAI, securing backing from these industry leaders would be a significant endorsement of its technology and strategic direction.