Apple and chip giant Nvidia are reportedly in talks to invest in OpenAI as part of a new fundraising round that could value the creator of ChatGPT at more than $100 billion.
Thrive Capital, the venture firm founded by real estate mogul Joshua Kushner, is leading the latest round of fundraising, which is expected to reach several billion dollars, according to The Wall Street Journal.
Microsoft, an Apple rival that already owns a 49% stake in ChatGPT after investing about $13 billion since 2019, is also expected to participate, the Journal reported.
However, details of how much Apple or Microsoft will invest have yet to be learned, the report added.
Apple and OpenAI did not immediately respond to a request for comment.
Meanwhile, chip giant Nvidia is also in talks to join, Bloomberg reported on Thursday.
Apple and OpenAI did not immediately respond to requests for comment, while Thrive Capital, Nvidia and Microsoft declined to comment.
OpenAI’s high valuation is the result of the AI arms race it sparked with the launch of ChatGPT in late 2022, prompting companies across industries to invest billions in the technology to stay ahead of the competition and capture market share.
The Sam Altman-led firm was reportedly valued at $80 billion in February after completing a deal where the company would sell existing shares in a so-called tender offer led by Thrive Capital.
Apple has quietly acknowledged that it needs help catching up to companies like Microsoft and Google, which have emerged as early leaders in AI.
Both Google and Samsung have already released smartphone models that tout AI features as their main attractions, while Apple has been mired in an uncharacteristic sales slump.
It’s rare for Apple to invest in tech startups. Instead, the company has focused on acquiring manufacturing partners to ensure the supply of components used to build its devices.
But in June, Apple said OpenAI would be its first official partner for Apple Intelligence, the iPhone maker’s artificial intelligence platform that will appear in the company’s devices and operating systems. The latest models come out next month.
Apple is relying on ChatGPT to make its virtual assistant Siri smarter and more useful.
Apple Intelligence will boast an improved Siri voice assistant, text correction and custom emoji creation.
The optional Siri port in ChatGPT will be free for all iPhone users and will be made available on other Apple products once the option is rolled out to the next generation of Apple operating systems.
ChatGPT subscribers are supposed to be able to easily sync their existing accounts when using an iPhone and should get more advanced features than free users.
By postal wire
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