San Francisco-based OpenAI is presently seeking to raise more capital that would enable it to reach a valuation of more than $100 billion. The $86 billion valuation of OpenAI could rise dramatically as a result of this financing. In an effort to raise OpenAI’s worth above $100 billion, reports state that Apple and NVIDIA are in discussions to become investors. Apple appears to be thinking about forming a strategic alliance with OpenAI.
Apple is famous for developing its own goods and technology. This occurs just before the business plans to launch its AI features for Apple Intelligence later this year. This action implies that Apple is open to enhancing its AI capabilities through outside partnerships, despite the company’s usual focus on internal development.
Apple, Nvidia Are Planning to Invest in OpenAI
According to a latest news, Apple is in talks to acquire stock in Sam Altman’s OpenAI, the business that created the well-known ChatGPT AI chatbot. The investment would come from a fresh round of funding that would put the AI startup’s valuation over $100 billion.
However, Apple, which is integrating ChatGPT into its phones, has grown to rely more and more on OpenAI. It doesn’t reveal the final amount that it and other parties may invest. It is also expected that Microsoft, OpenAI’s principal strategic investor, will contribute to the latest round of funding. The chatbot maker might be valued at over $100 billion overall, up $20 billion from an estimate made in February, according to the latest update.
OpenAI said separately that ChatGPT had over 200 million weekly users as of now. This is less than two years after the bot was introduced, and it represents a doubling of the number from late last year. 92% of Fortune 500 organizations, according to the company led by Sam Altman, currently use its products.
Apple and Nvidia could be OpenAI’s next big investors
A $100 billion fundraising round for OpenAI, the company that makes ChatGPTs, is apparently in talks for contributions from Nvidia and Apple. Thrive Capital, an early OpenAI investor, would lead the purchase, should it go through, according to latest news.
Microsoft could also take part; it is rumored that Microsoft will own 49% of OpenAI. Funding is required for OpenAI. It is said to be on course to lose $5 billion by year’s end, despite reports that its annualized revenue topped $3.4 billion early this year. Funding is required for OpenAI.
Apple’s growing AI interests
Apple appears to have a bigger plan in place to improve its AI products, which includes its interest in OpenAI. At its Glowtime event on September 9, the the company had revealed more about its AI developments and perhaps unveil its Apple Intelligence capabilities.
In order to provide customers with a more comprehensive and varied AI experience on their devices, Apple appears to be combining the creation of its own models with the incorporation of outside solutions in its AI strategy this year. Investing in OpenAI might provide Apple more leeway in its AI strategy, enabling the company to maintain its leadership position in the field while upholding the core values of Apple’s reputation, privacy and data protection.
Apple is rumored to be working on AI projects in the future with other major tech companies including Google, Anthropic, and Meta. Apple is dedicated to upholding its strict privacy policies and seeking to strike a balance between user privacy and cutting-edge innovation, even in the face of these possible collaborations.
The journey of OpenAI to a $100 billion valuation
- The San Francisco-based startup OpenAI is now trying to raise additional capital that would raise its estimated value to more than $100 billion. Along with other investors, Thrive Capital is anticipated to lead this financing round with a $1 billion contribution. Although the specifics are still being worked out, this round may greatly increase OpenAI’s worth from its present $86 billion. Microsoft has not commented whether or not it will participate in this round of funding.
- After many successful funding rounds, including a significant investment from Microsoft earlier this year that valued the business at over $30 billion, the company has experienced a rise in valuation. The quick increase in OpenAI’s valuation is a reflection of the rising demand for artificial intelligence (AI) technology, which has been fueled in part by the popularity of its ChatGPT product.
- OpenAI’s significance in the AI sector is only increasing, as seen by the prices at which its shares are trading on the secondary market, indicating a valuation of more than $110 billion. OpenAI is playing an increasingly important role in influencing the direction of artificial intelligence as big tech companies such as Apple and NVIDIA express interest in investing.
Juniper Leena is a lawyer and finance graduate. She loves to write articles about the USA economy and social security. In her free time, she enjoys playing chess. She is the head of the writing team at Fort Hunt Herald and reports to Niamh Prescott. She also completed her MBA in finance in 2018.