New Funds for OpenAI: Apple, Nvidia, and Microsoft Leading the Way | OpenAI news | ChatGPT | OpenAI free | Turtles AI

Apple and Nvidia may be set to invest in OpenAI’s upcoming fundraising round, potentially valuing the ChatGPT creator at about $100 billion. Thrive Capital might lead the deal, with Microsoft also possibly participating, strengthening the technological and business ties between these companies.

Highlights:

• New Fundraising - OpenAI could be valued at $100 billion with the participation of Apple, Nvidia, and Microsoft.
• Technological Collaboration - Nvidia provides the necessary GPUs for OpenAI’s AI, while Apple plans to integrate ChatGPT into its devices.
• Financial and Operational Expansion - OpenAI needs capital to cover estimated losses of $5 billion by the end of the year.
• Microsoft’s Role - Microsoft, already a key partner of OpenAI, could further strengthen its position in the AI sector.

According to sources close to the matter, including the New York Times, Nvidia and Apple are considering a potential investment in OpenAI’s next fundraising round, which could see the company valued at an impressive $100 billion. Thrive Capital, an existing investor in OpenAI, could spearhead this agreement, while Microsoft — which currently holds a 49% stake in OpenAI — might also participate in this new funding phase. However, the interest of Nvidia and Apple is not surprising, considering the existing technological and commercial relationships between the parties.

Nvidia, a leader in the graphics processing unit (GPU) sector, provides OpenAI with the computing units needed to train its AI models. Nvidia’s GPUs are essential for processing and computing large amounts of data, a fundamental need for the continuous development of OpenAI’s machine learning algorithms. In recent years, Nvidia has strengthened its position as the primary supplier of hardware for AI, with a range of highly specialized products that include tensor processing units (TPUs) and the latest generation A100 and H100 chips. These devices are designed to handle large-scale computing operations, enabling greater efficiency and superior performance compared to traditional chips.

Meanwhile, Apple has shown increasing interest in the AI field, seeking to integrate AI capabilities within its hardware and software ecosystems. Earlier this year, the Cupertino-based company announced plans to incorporate advanced AI features into its products, including new AI-based tools and applications that will launch with the future version of iOS. The integration of ChatGPT is a key point in this strategy, allowing users to leverage high-level conversational technologies directly from their Apple devices. This synergy with OpenAI offers Apple the opportunity to enrich its platforms with globally recognized and tested AI solutions.

On the other hand, OpenAI is in urgent need of new capital. Despite an annualized revenue of about $3.4 billion recorded earlier this year, the company expects to accumulate losses of up to $5 billion by year-end due to the expansion of its research and development efforts, as well as hiring new specialized personnel. The cost of training large-scale language models like GPT-4 has increased exponentially, especially in terms of energy consumption and the need for advanced computing infrastructure. Collaborations with industry giants like Nvidia and Apple could therefore not only provide the necessary financial support but also ensure continued access to cutting-edge technologies.

Microsoft’s presence in this landscape is equally significant. With a substantial stake in OpenAI, Microsoft is seeking to strengthen its position in the AI sector, using technologies developed by OpenAI to enhance its products and services, such as the Azure cloud platform and its enterprise productivity tools. Microsoft’s participation in this funding round would not only confirm its commitment to collaboration with OpenAI but could also represent a strategic step to maintain its leadership position in the AI market.

This fundraising could, therefore, be one of the most relevant financial operations in the tech sector in recent years, with the potential to redefine balances and alliances in the global AI landscape. The combination of Nvidia’s technological expertise, Apple’s capacity for innovation, and Microsoft’s integration strategy represents an opportunity to further accelerate progress in this field.