OpenAI’s New Funding Round Attracts Major Tech Giants
OpenAI’s New Funding Round Attracts Major Tech Giants
OpenAI’s Latest Valuation Set to Exceed $100 Billion with Major Tech Companies on Board
In a notable development for the tech industry, OpenAI is drawing significant interest from three of the largest technology companies as it embarks on a new funding round that could value the artificial intelligence startup at over $100 billion. The companies reportedly involved are Nvidia Corp, Apple Inc, and Microsoft Corp.
Nvidia, renowned as the leading chipmaker, is in talks to join this funding round with a proposed investment of approximately $100 million. Thrive Capital is set to spearhead the round with an investment of about $1 billion, as reported by Bloomberg. Discussions also suggest that Apple and Microsoft are considering participation, although these talks remain confidential.
The potential involvement of these tech giants underscores the critical role OpenAI, the creator of the revolutionary ChatGPT chatbot, plays in the AI landscape. Microsoft, already a major investor with around $13 billion invested, relies heavily on OpenAI’s technologies to enhance its Windows and Copilot AI platforms. Meanwhile, Apple, which is integrating OpenAI’s technology into its upcoming iPhone operating system, is also exploring ways to leverage AI more effectively. Nvidia’s role, supplying essential AI accelerators, positions it to benefit from the growing demand for AI tools.
The increasing scrutiny of Big Tech’s influence in AI comes amid regulatory concerns in both the EU and US regarding Nvidia’s dominance in AI chip production and Microsoft’s close partnership with OpenAI. Apple’s integration of ChatGPT into its new suite of AI features, Apple Intelligence, further exemplifies the close ties between these tech behemoths and AI advancements.
Nvidia’s recent quarterly report highlights its success, with revenue more than doubling to $30 billion and a positive forecast for the current quarter. Despite this, Nvidia’s stock saw a decline, reflecting investors’ high expectations for the company’s performance.
OpenAI CFO Sarah Friar has indicated that the new funding will be used to acquire additional computing resources and support other operational needs. The company has been seeking fresh capital since at least December, aiming to reinforce its position as one of the world’s most valuable venture-backed startups. The explosive success of ChatGPT has catalyzed an arms race among tech companies to integrate AI into their products and invest in promising startups.
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