Nvidia Corp., the world’s leading chipmaker, is reportedly considering joining a funding round for OpenAI that could value the artificial intelligence startup at over $100 billion, according to sources familiar with the discussions. Apple Inc. and Microsoft Corp. have also been in talks about participating in this financing round, which is expected to be led by Thrive Capital with a $1 billion investment, as reported by Bloomberg earlier this week. Nvidia is said to be discussing an investment of around $100 million, according to two sources.
If these discussions proceed, it would signify support from three of the most valuable tech companies for OpenAI, the creator of the revolutionary ChatGPT chatbot. Microsoft, already OpenAI’s largest backer with an investment of approximately $13 billion, has deeply integrated OpenAI’s services into its Windows and Copilot AI platforms, betting that these capabilities will drive future growth.
Apple has existing ties with OpenAI as well. The company is incorporating ChatGPT into its new AI feature suite, Apple Intelligence. Although Apple was initially set to take a board observer seat at OpenAI alongside Microsoft, those plans were dropped in July.
Nvidia, which supplies the crucial infrastructure for developing and running AI tools like ChatGPT, has seen its sales of AI accelerators surge in the past two years. In its latest quarterly report, Nvidia announced that its revenue more than doubled to $30 billion, and it forecasted even higher sales in the upcoming quarter, though this didn’t prevent a slight decline in its shares.
OpenAI’s Chief Financial Officer, Sarah Friar, informed employees via memo that the company is seeking new capital, though she did not provide specifics, sources said. The company has been in discussions to raise funds at a valuation of $100 billion or more since at least December, according to Bloomberg.
The new funding would strengthen one of the world’s most valuable venture-backed startups. The success of ChatGPT has ignited an arms race among tech companies, which are rapidly integrating AI into their products and investing in other promising AI startups. According to Friar’s memo, the financing will be used to enhance computing power and cover other operating expenses.
This potential investment from Nvidia, Apple, and Microsoft underscores Big Tech’s growing influence over artificial intelligence, a trend that has drawn scrutiny from regulators in both the EU and the US.
