Apple and Nvidia in talks to invest in OpenAI

Tech giants Apple and Nvidia are reportedly in discussions to invest in artificial intelligence company OpenAI as part of a new fundraising round that could value the ChatGPT creator at over $100 billion, according to recent media reports.

The Wall Street Journal first reported Apple’s potential involvement, while Bloomberg News disclosed Nvidia’s interest. This news follows earlier reports that venture capital firm Thrive Capital is set to lead the funding round with an investment of approximately $1 billion.

OpenAI has become a key player in Apple’s AI strategy, with the iPhone maker introducing ChatGPT to Apple devices in June as part of its “Apple Intelligence” initiative. Craig Federighi, head of software at Apple, explained the partnership at a recent developers conference, stating, “We wanted to start with the best.”

Microsoft, which already holds a significant stake in OpenAI, is also expected to participate in this funding round. The tech behemoth has invested $13 billion in OpenAI since 2019 and owns a 49 per cent share of the AI startup’s profits.

While the exact investment amounts remain undisclosed, this move marks an unusual step for Apple, which typically avoids investing in startups. The company’s interest in OpenAI underscores its commitment to securing access to cutting-edge AI technology amidst fierce competition in the sector.

Tim Cook, chief executive officer of Apple, has been focusing on integrating AI features throughout the company’s operating system. The upcoming generation of iPhones, expected to be launched next month, is anticipated to showcase new AI tools as a standout feature.

Sam Altman, who leads OpenAI, has seen his company’s valuation soar since the launch of ChatGPT in late 2022, which sparked an AI arms race across various industries.