Nvidia Corp., the world’s largest chipmaker, has discussed joining a funding round for OpenAI that would value the artificial intelligence startup at more than $100 billion, according to people familiar with the matter.
Apple Inc. and Microsoft Corp. are also in talks about participating in the financing, said the people, who asked not to be identified because the discussions are private. Bloomberg reported earlier this week that the round will be led by Thrive Capital, which is investing about $1 billion. Nvidia has discussed investing about $100 million, two of the people said.
If the discussions go ahead, it would mean that three of the most valuable tech companies are backing OpenAI, the company behind the groundbreaking ChatGPT chatbot. Microsoft was already OpenAI’s biggest funder, investing around $13 billion.
Representatives for Nvidia, Apple, Microsoft, OpenAI and Thrive declined to comment.
Big Tech’s influence on artificial intelligence remains a subject of continued scrutiny, with regulators in both the EU and US expressing concerns about Nvidia’s dominance in AI chips and Microsoft’s close ties with OpenAI. Microsoft has tightly integrated OpenAI’s services into its Windows and Copilot AI platforms – a bet that these capabilities will help accelerate growth.
Apple already has ties with OpenAI, too. The iPhone maker is adding ChatGPT to its new set of AI features, called Apple Intelligence. The company was also set to take a board observer seat at OpenAI alongside Microsoft — but abandoned those plans in July.
Meanwhile, Nvidia supplies the critical infrastructure needed to develop and run AI tools like ChatGPT. It is the largest maker of so-called AI accelerators, sales of which have exploded over the past two years.
Nvidia’s latest quarterly report, released Wednesday, showed revenue more than doubled to $30 billion. It predicted even bigger sales in the current quarter, beating average analysts’ estimates, though investors have become so accustomed to spectacular results that shares still fell.
OpenAI Chief Financial Officer Sarah Frier told employees in a memo on Wednesday that the company is looking for new capital, but she did not provide details, according to people familiar with the matter. The company has been in discussions to raise funding at a valuation of $100 billion or more since at least December, Bloomberg reports.
This financing will boost one of the world’s most valuable venture-backed startups. ChatGPT’s runaway success has also triggered an arms race among tech companies, which are integrating AI technology into their products and funding other promising startups.
In a memo to employees, Fryer said OpenAI would use the funding to acquire more computing power and for other operating expenses, the people said.
The Wall Street Journal previously reported on the discussions with Apple.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
