Nvidia, Apple, and Microsoft Consider Joining OpenAI's Latest Funding Round

Nvidia Corp. is considering joining a significant funding round for OpenAI, the artificial intelligence startup behind ChatGPT, which could value the company at over $100 billion. This potential investment has sparked interest in the tech world as it would align three of the most valuable tech companies with OpenAI.

According to reports, Nvidia is looking at investing approximately $100 million in this funding round. Apple Inc. and Microsoft Corp. are also in talks about participating in the financing. The round is expected to be led by Thrive Capital, which is set to invest around $1 billion, Bloomberg reported earlier this week.

Here is what you need to know

If these discussions advance, it would mean that Nvidia, Apple, and Microsoft—three of the top tech giants—would all be backing OpenAI. Microsoft is already OpenAI's largest supporter, having invested around $13 billion in the startup.

Representatives from Nvidia, Apple, Microsoft, OpenAI, and Thrive Capital have all declined to comment on these discussions.

Nvidia's potential investment comes as the company reports impressive financial results. In its latest quarterly report, Nvidia announced that its revenue more than doubled to $30 billion. The company expects even higher sales in the current quarter, surpassing analyst expectations, although its shares declined despite the strong performance.

Big Tech's influence over AI is raising concerns 

The scrutiny on Big Tech's influence over AI continues to grow. Regulators in both the U.S. and the EU are increasingly concerned about Nvidia's dominance in AI chips and Microsoft's close ties with OpenAI. Microsoft has integrated OpenAI's technology into its Windows and Copilot AI platforms, betting that these advancements will drive growth.

Apple also has a stake in the AI landscape. The tech giant plans to incorporate ChatGPT into its new suite of AI features, Apple Intelligence. Although Apple was initially set to join Microsoft in taking a board observer seat at OpenAI, those plans were abandoned in July.

Nvidia's role in AI is crucial as it provides the infrastructure necessary for developing and running AI tools like ChatGPT. The company's AI accelerators have seen a surge in sales over the past two years.

Why is OpenAI raising more funds?

In a memo to employees on Wednesday, OpenAI Chief Financial Officer Sarah Friar mentioned that the company is seeking new capital but did not provide specifics. OpenAI has been exploring funding at or above a $100 billion valuation since at least December.

The anticipated financing aims to support OpenAI's growth, enabling the acquisition of more computing power and covering other operational expenses. The success of ChatGPT has triggered a competitive rush among tech firms, which are incorporating AI into their products and investing in promising startups.