The latest agreement, spearheaded by the investment firm Thrive Capital, would place the artificial intelligence start-up’s valuation at more than $100 billion.
Three sources involved with the conversations, who spoke on the condition of anonymity, said that Apple and the chipmaker Nvidia are in talks to invest in OpenAI as part of a new transaction that would value the San Francisco artificial intelligence start-up at $100 billion.
Thrive Capital would lead the transaction, and Microsoft might be involved as well. According to the people, Thrive would invest roughly $1 billion in OpenAI.
Compared to OpenAI’s valuation eight months ago, a $100 billion valuation would represent a $20 billion rise.
Both Apple and Nvidia declined to comment.
With the debut of the internet chatbot ChatGPT in late 2022, OpenAI ignited the artificial intelligence boom. Tens of billions of dollars were invested in the start-up and other businesses creating related technology by investors in the months that followed.
Investor interest has waned in recent months as a number of well-known start-ups have virtually merged into internet behemoths like Google, Amazon, and Microsoft. However, OpenAI has continued to run as a stand-alone business with the goal of developing and marketing its own goods and technology.
The start-up, which requires billions of dollars in raw processing power to develop its artificial intelligence technology, has received over $13 billion in investments from Microsoft and other investors since 2019. Over the past 18 months, Nvidia, which provides a large portion of that processing power in the form of specialized computer chips ideal for the advancement of artificial intelligence, has grown dramatically. Nvidia revealed on Wednesday that for the three months that concluded in July, both company sales and profit had more than doubled.
A deal spearheaded by Thrive at the beginning of this year put the worth of OpenAI at above $80 billion. The start-up did not issue fresh shares in connection with that deal. Employees of the corporation were permitted to sell their existing shares.
Three sources involved with the conversations, who spoke on the condition of anonymity, said that Apple and the chipmaker Nvidia are in talks to invest in OpenAI as part of a new transaction that would value the San Francisco artificial intelligence start-up at $100 billion.
Thrive Capital would lead the transaction, and Microsoft might be involved as well. According to the people, Thrive would invest roughly $1 billion in OpenAI.
Compared to OpenAI’s valuation eight months ago, a $100 billion valuation would represent a $20 billion rise.
Both Apple and Nvidia declined to comment.
With the debut of the internet chatbot ChatGPT in late 2022, OpenAI ignited the artificial intelligence boom. Tens of billions of dollars were invested in the start-up and other businesses creating related technology by investors in the months that followed.
Investor interest has waned in recent months as a number of well-known start-ups have virtually merged into internet behemoths like Google, Amazon, and Microsoft. However, OpenAI has continued to run as a stand-alone business with the goal of developing and marketing its own goods and technology.
The start-up, which requires billions of dollars in raw processing power to develop its artificial intelligence technology, has received over $13 billion in investments from Microsoft and other investors since 2019. Over the past 18 months, Nvidia, which provides a large portion of that processing power in the form of specialized computer chips ideal for the advancement of artificial intelligence, has grown dramatically. Nvidia revealed on Wednesday that for the three months that concluded in July, both company sales and profit had more than doubled.
A deal spearheaded by Thrive at the beginning of this year put the worth of OpenAI at above $80 billion. The start-up did not issue fresh shares in connection with that deal. Employees of the corporation were permitted to sell their existing shares.
Other current shareholders would be able to sell their shares under the new agreement.
Bloomberg had previously reported that Nvidia was involved in the negotiations. The Wall Street Journal had earlier revealed Apple’s involvement. (The New York Times filed a copyright infringement lawsuit against Microsoft and OpenAI last year, claiming the companies’ unapproved use of news items as training material for its models.)
For years, companies such as Google, Microsoft, Meta, and OpenAI have led the way in artificial intelligence development, while Apple has trailed behind. It recently declared that users would soon be able to access OpenAI’s chatbot on their iPhones.
Apple revealed their plan to include generative AI into their devices in June. Its Siri virtual assistant will function better thanks to the technology, which it refers to as Apple Intelligence. It will also automatically prioritize messages and provide writing capabilities that may review or suggest lines for emails, notes, and texts.
When the firm holds an event at its Cupertino, California headquarters on September 9 to announce its newest iPhones, it is anticipated that the company will provide further information about the technology.
Bloomberg had previously reported that Nvidia was involved in the negotiations. The Wall Street Journal had earlier revealed Apple’s involvement. (The New York Times filed a copyright infringement lawsuit against Microsoft and OpenAI last year, claiming the companies’ unapproved use of news items as training material for its models.)
For years, companies such as Google, Microsoft, Meta, and OpenAI have led the way in artificial intelligence development, while Apple has trailed behind. It recently declared that users would soon be able to access OpenAI’s chatbot on their iPhones.
Apple revealed their plan to include generative AI into their devices in June. Its Siri virtual assistant will function better thanks to the technology, which it refers to as Apple Intelligence. It will also automatically prioritize messages and provide writing capabilities that may review or suggest lines for emails, notes, and texts.
When the firm holds an event at its Cupertino, California headquarters on September 9 to announce its newest iPhones, it is anticipated that the company will provide further information about the technology.
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