2 weeks Ago By Bloomberg
Apple and Microsoft also have been in talks about taking part in the financing, said the people, who asked not to be identified because the deliberations are private. The round would be led by Thrive Capital, which is investing about US$1 billion, Bloomberg reported earlier this week. Nvidia has discussed investing about US$100 million, two of the people said.
If the discussions move forward, it would mean the three most valuable tech companies are all backing OpenAI, maker of the groundbreaking ChatGPT chatbot. Microsoft was already OpenAI’s biggest funder, having invested roughly US$13 billion. Representatives for Nvidia, Apple, Microsoft, OpenAI and Thrive all declined to comment.
Nvidia, meanwhile, supplies the critical infrastructure needed to develop and run AI tools like ChatGPT. It is the biggest maker of so-called AI accelerators, sales of which have soared over the past two years. In Nvidia’s latest quarterly report, released on Wednesday, revenue more than doubled to US$30 billion.
It predicted even bigger sales in the current quarter, topping the average analysts estimates, though investors have grown so accustomed to blowout results that the shares still declined. OpenAI chief financial officer Sarah Friar told employees in a memo Wednesday that the company was seeking fresh capital, without giving details, according to people familiar with the matter. The company has been in discussions to raise funding at a valuation at or above US$100 billion since at least December, Bloomberg has reported.
The financing would bolster one of the world’s most valuable venture-backed start-ups. The runaway success of ChatGPT also has kicked off an arms race among tech companies, which are integrating AI technology across their products and funding other promising start-ups. In her memo to employees, Friar said that OpenAI would use the financing to acquire more computing power and fund other operating expenses, the people said.
The Wall Street Journal previously reported on the discussions with Apple..
