Apple and Nvidia are reportedly in talks to invest in ChatGPT creator OpenAI, participating in a substantial funding round led by venture capital firm Thrive Capital.
- Apple and Nvidia Joining Forces: The fundraising round, which will see Apple and Nvidia join longtime investor Microsoft, is expected to value the artificial intelligence research organization at over $100 billion, according to The Wall Street Journal.
- First-Time Investments: This marks the first time either Apple or Nvidia would invest in OpenAI. Both companies have recently strengthened their ties with the AI firm, though it remains unclear how much each intends to contribute.
Microsoft’s Continued Influence:
Microsoft is currently OpenAI’s largest and most influential backer, having invested a total of $13 billion into the AI research organization since 2019. These investments have given Microsoft a 49% stake in OpenAI.
Apple and Nvidia’s Growing AI Interests:
- In June, Apple announced an agreement with OpenAI to integrate ChatGPT into its own AI programs.
- Nvidia has collaborated closely with OpenAI in the past on various research initiatives, leveraging Nvidia’s most advanced semiconductors.
Investment Trends:
- Apple has traditionally avoided investing in startups, making this potential investment significant.
- Nvidia has increased its investment activity over the past few years, particularly in AI companies.
Fundraising Led by Thrive Capital:
The fundraising round is spearheaded by Thrive Capital, a venture firm founded by Joshua Kushner, the younger brother of Jared Kushner, Ivanka Trump’s husband and son-in-law of former U.S. President Donald Trump.
OpenAI’s AI Revolution:
OpenAI first launched its ChatGPT large language model in November 2022, a debut widely credited with sparking the current AI boom, which has significantly increased the value of the world’s top tech companies.
Awaiting Confirmation:
MarketWatch has reached out to Apple and Nvidia for comment on the potential investments.
OpenAI’s Origins:
Founded in 2015, OpenAI initially received backing from a roster of influential Silicon Valley figures, including Tesla CEO Elon Musk, Palantir founder Peter Thiel, LinkedIn co-founder Reid Hoffman, and Y Combinator founding partner Jessica Livingston.