Apple, Nvidia Likely To Invest in OpenAI Funding Round, Could Value ChatGPT Maker at Over USD 100 Billion: Report
Apple and Nvidia are reportedly planning to join OpenAI's latest funding round, which could value the ChatGPT maker at over USD 100 billion to strengthen its position in the AI industry.
New Delhi, August 30: Apple and chip giant Nvidia reportedly plans to join OpenAI's latest funding round. The round of investment could potentially value OpenAI, the company behind ChatGPT, at more than USD 100 billion. Apple and Nvidia, known for their technological capabilities, are expected to be major investors in the funding round. If they move forward with the plan, it could strengthen Sam Altman-led OpenAI’s position in the artificial intelligence (AI) industry by enhancing its capabilities and broadening its reach.
As per a report of Reuters, Apple and Nvidia are in discussions to join the funding round for OpenAI. The development can be significant, considering both companies' strategic interests in AI. Apple has been gradually expanding its AI capabilities through its Siri voice assistant, while Nvidia’s advanced GPUs are an essential component for AI computations. The involvement of these two tech giants in the funding round could bring considerable resources and expertise to OpenAI, for potentially accelerating the development of its AI technologies. US and Seoul Markets Down Following Underwhelming Earnings Result of Chip Giant Nvidia.
Sam Altman-led OpenAI's significant valuation can be seen as a direct outcome of the AI competition it initiated when it introduced ChatGPT in 2022. The step might have prompted companies from various industries to invest billions of dollars in AI technology to maintain a competitive edge and gain a larger market share. The specific investment amounts from Apple and Microsoft have not been disclosed. However, Microsoft, which is OpenAI's primary strategic investor with an investment of over USD 10 billion, is also anticipated to take part in the funding round. SK Hynix Develops World’s First 6th Generation DRAM Chip.
OpenAI has become significant to Apple's AI strategy. In June, Apple introduced OpenAI's chatbot, ChatGPT, to its devices as part of its Apple Intelligence initiative. In February, OpenAI was reportedly valued at USD 80 billion. The valuation is said to come after a deal where the company sold existing shares in a tender offer led by Thrive Capital.
(The above story first appeared on LatestLY on Aug 30, 2024 01:19 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).