OpenAI funding round gets traction as big tech leans on ChatGPT
OpenAI’s latest funding round has drawn interest from the three most valuable tech companies, underscoring the importance of the artificial intelligence startup to the broader industry.
Nvidia Corp., the world’s biggest chipmaker, has discussed joining a funding round that would value OpenAI at more than $100 billion. Apple Inc. and Microsoft Corp. have also been in talks about participating in the financing.
Big Tech Support
The proposed round would be led by Thrive Capital, which is investing about $1 billion. Nvidia has discussed investing about $100 million.
If the discussions move forward, it would mean three of the biggest names in tech would all be backing OpenAI, maker of the groundbreaking ChatGPT chatbot. Each firm has become dependent on the startup in recent years.
Microsoft is already OpenAI’s biggest funder, having invested roughly $13 billion. Apple, which had a late start in AI, is leaning on OpenAI to help weave artificial intelligence into an upcoming version of the iPhone operating system. And Nvidia will rise alongside the popularity of the tools it powers.
Regulatory Scrutiny
Big Tech’s influence over artificial intelligence has been drawing mounting scrutiny, with regulators in both the EU and US expressing concerns about Nvidia’s dominance in AI chips and Microsoft’s close relationship with OpenAI.
Microsoft has tightly integrated OpenAI’s services into its Windows and Copilot AI platforms. Apple has existing ties with OpenAI as well, adding ChatGPT to its new suite of AI features, called Apple Intelligence.
Nvidia, meanwhile, supplies the critical infrastructure needed to develop and run AI tools like ChatGPT. It’s the biggest maker of AI accelerators, sales of which have soared over the past two years.
Seeking Fresh Capital
OpenAI Chief Financial Officer Sarah Friar told employees in a memo that the company was seeking fresh capital. The company has been in discussions to raise funding at a valuation at or above $100 billion since at least December.
The financing would bolster one of the world’s most valuable venture-backed startups.
In her memo to employees, Friar said that OpenAI would use the financing to acquire more computing power and fund other operating expenses.
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