Apple, Nvidia Rumored to Become Key Investors in OpenAI

Key Takeaways

• Apple and Nvidia are likely to invest in OpenAI.
• OpenAI’s new funding round could value the company above $100 billion, the highest of any AI startup in history.
• It is not yet known how much the companies will invest.

Apple and leading chip developer Nvidia are reportedly in talks to invest in OpenAI as part of a new fundraising round that could value the company above $100 billion, according to reports on Thursday, Aug. 29. 

The latest valuation is the highest of any AI startup in history and marks a significant increase over the company’s previous $86 billion valuation.

Apple in talks to invest in OpenAI

First reported by the Wall Street Journal, Apple is currently in talks to invest in OpenAI as the iPhone maker grows its partnership with the ChatGPT maker. 

Apple announced in June that it was partnering with OpenAI to integrate ChatGPT into its experiences, particularly within iOS 18. This will allow iPhone, iMac, and iPad users to access ChatGPT’s capabilities. 

The partnership and potential funding are part of Apple’s goal to strengthen its AI-driven services and ecosystem. 

It is not yet known how much Apple will invest in OpenAI. 

Nvidia in talks to invest in OpenAI 

Nvidia, the world’s leading chipmaker, is also in talks to join OpenAI’s funding round, Bloomberg first reported, citing people familiar with the matter.

The company is a critical supplier of GPUs that power many AI applications, including those developed by OpenAI.

Investing in OpenAI will likely deepen Nvidia’s involvement in the AI industry and ensure its hardware remains the main choice for the most advanced AI models, like ChatGPT.

The investment could be scrutinized by EU and US regulators, who have already expressed concerns about Nvidia’s influence over AI chips.

OpenAI Needs Capital 

Despite its revenue reportedly reaching $3.4 billion earlier this year, OpenAI is in need of serious capital. According to The Information , the company could lose around $5 billion by the end of the year and has already spent $8.5 billion on AI training and staff.

AI training is extremely expensive due to several resource-intensive factors, primarily because of the immense computational power required.

Training large AI models like OpenAI’s GPT series involves processing billions of parameters. This demands powerful GPUs, which must run continuously for weeks or months to complete the training process.

The scale of computation requires specialized hardware like Nvidia’s top-tier GPUs and consumes a significant amount of energy. In addition, further costs are required to run and cool data centers to support intensive AI training operations.

Anthropic CEO Dario Amodei recently stated in a podcas t that the cost of training AI models could be well over $100 billion by “2025, 2026, maybe 2027.”

About the Author

Kurt Robson

Kurt Robson is a London-based reporter at CCN with a diverse background across several prominent news outlets. Having transitioned into the world of technology journalism several years ago, Kurt has developed a keen fascination with all things AI. Kurt’s reporting blends a passion for innovation with a commitment to delivering insightful, accurate and engaging stories on the cutting edge of technology.

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