Apple is in talks to join a new round of funding from OpenAI, according to a report Wall Street JournalThis round would make it a $100 billion startup.
Shortly after he gave the same news The New York Times citing its own sources and expanding on this to another major technology company that is also reportedly looking to be part of the round: NVIDIA.
Why is it important?This potential investment is a boost to OpenAI’s reputation in the market and demonstrates, once again, the interest of large technology companies in securing access to cutting-edge technologies such as the models behind ChatGPT.
The context. OpenAI changed the long-term AI agenda when it launched ChatGPT in late 2022. Since then, investors of all sizes have poured tens of billions into AI startups. Microsoft was quick to do so with OpenAI itself, Amazon split its Anthropic buy-in into two rounds.
This new round, led by Thrive Capital, seeks several billion dollars for OpenAI, which is still in need of a lot of cash to maintain its leadership. Microsoft is also said to participate.
- Apple announced in June the direct integration of ChatGPT into iOS and Siri as part of Apple Intelligence. NVIDIA, meanwhile, is a key supplier of the chips that power OpenAI’s services.
In figures:
- OpenAI’s current valuation: $80 billion.
- Potential valuation after the round: $100 billion.
- Thrive Capital’s expected investment: at least $1 billion.
In detailOpenAI needs billions in computing power to continue developing its technologies. NVIDIA is supplying most of it and is coming off spectacular growth over the past year and a half.
The entry of Apple and NVIDIA would consolidate OpenAI’s leading role in generative AI, making it difficult for Google or Meta to overtake it. However, an investment from Apple could complicate its idea of being a neutral partner for other technology companies.
- Apple has traditionally been reluctant to invest in startups without a full acquisition.
- This is a sign of their need not to be left behind in generative AI.
- A couple of months ago he planned to have Phil Schiller join the OpenAI board, but then cancelled it, according to The Verge.
The unknownCan OpenAI maintain its independence from the big tech companies, or will it end up being acquired? Its $100 billion valuation target leaves it at a level where an acquisition would be very difficult.
For context, the largest acquisition in history is still Microsoft and the nearly $70 billion it spent to acquire Activision-Blizzard in 2022. Apple’s biggest purchase ever was Beats ten years ago for $3 billion.
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