Apple, Nvidia eye OpenAI investment

My scoop with?Tom Dotan about Apple's active discussions to take part in a multibillion dollar fundraising round into ChatGPT-maker OpenAI. The move would cement the ties between the two companies, but could also complicate Apple's plans to more broadly partner with other AI companies. This comes two months after Apple's announced a partnership with OpenAI. At its June developer conference, Apple said that ChatGPT would be integrated into Apple Intelligence, its new system for infusing generative AI features throughout the iPhone. Apple said it's looking to partner with other AI companies after starting out with ChatGPT. Apple started with ChatGPT because “we wanted to start with the best,” said software chief Craig Federighi at the June conference. The move is unusual one for Apple, which typically doesn't invest in startups, but it's not without precedent: In 2017, Apple invested $1 billion into SoftBank's Vision Fund; and in 2016, it invested $1 billion into Chinese ride-hailing startup Didi Chuxing. https://lnkd.in/gFSbiBkU

I’m supposed to be on vacation (staycation), but couldn’t resist a story on the biggest names in tech. Sources tell Mark Gurman Dina Bass and myself that NVIDIA is in talks to invest in OpenAI in the round that would value the ChatGPT-maker above $100B.

Nvidia, Apple and Microsoft — the three most valuable tech companies — are in talks to invest in OpenAI as part of the company’s new $100 billion funding round. Microsoft was already OpenAI’s biggest funder, having invested roughly $13 billion. Apple has existing ties with OpenAI as well. The iPhone maker is integrating ChatGPT into its new suite of AI features, called Apple Intelligence. Apple also was slated to take a board observer seat at OpenAI — alongside Microsoft — though those plans were dropped in July. Nvidia, meanwhile, supplies the critical infrastructure needed to develop and run AI tools like ChatGPT. It’s the biggest maker of so-called AI accelerators, sales of which have soared in the past two years.

Wall Street Journal is reporting that Apple is in talks to join OpenAI's next funding round (which makes sense, esp, as their foray into models is supposed to be a hybrid approach of their tech and OpenAI's): https://lnkd.in/gBuVT9VZ

The Wall Street Journal just reported that Apple is in talks to participate in the OpenAI round of financing, which appears to be being led by Thrive Capital. Combining Apple, Microsoft and their existing #syndicatepartners it appears that everyone thinks that OpenAI is the "horse to bet on." The one interesting players not part of this, which would seem obvious, are NVIDIA or even Intel Corporation. What do you think? #Management #VentureCapital #PrivateEquity #CapitalMarkets #AIFinancing #CloudComputing https://lnkd.in/gBvtS4xD

The landscape of generative AI is evolving at an unprecedented pace. As I have said over the years, Boards lack deep and wide tech expertise to oversee management and make prudent capital allocation decisions. OpenAI has long been a frontrunner, providing powerful models that certain enterprises rely on. However, the competitive landscape is shifting. Companies like IBM and Mistral are not just developing rival models; they are also crafting tailored enterprise solutions that address specific business needs. As organizations begin to explore alternatives to GPT-3.5 and 4, the focus is shifting toward models that are more cost-effective and specialized. This trend highlights a crucial point: businesses are no longer looking for one-size-fits-all solutions. They want tools that can seamlessly integrate into their existing workflows and deliver tangible results. For OpenAI, the challenge lies in enhancing its models to be more practical, safe, and user-friendly. This is vital for maintaining its competitive edge and addressing common adoption hurdles that many organizations face. But what does this mean for the broader ecosystem? As LLM providers delve deeper into enterprise application development, we must consider the implications for vendors that have emerged to meet these needs. Will they adapt, or will they find themselves overshadowed by larger players? The future of generative AI is not just about competition; it’s about collaboration and innovation. As we navigate this dynamic environment, it’s essential for Boards to seek metrics on Open Science, Open Communities, and Open Innovation and stay informed and adaptable. What are your thoughts on the evolving landscape of generative AI? How do you see the role of specialized models shaping the future of value creation from Board's AI Oversight standpoint? Kara Reinhardt Manuj Aggarwal Nitin Gaur #CEO #KSgems #GenerativeAI #EnterpriseSolutions #AITrends #AIstrategy

OpenAI is in talks to raise a funding round that would value the AI company at more than $100 billion. Thrive Capital is leading the round and will invest $1 billion, according to a source with knowledge of the matter. Earlier this year, OpenAI was valued at a reported $80 billion from $29 billion the prior year. Annualized revenue reportedly surpassed $2 billion earlier this year. Growth took off in late 2022 after the company launched its ChatGPT chatbot and has continued as it rolled out products for businesses and expanded into AI-generated photos and videos. The Wall Street Journal was?first to report?on the talks and said that?Microsoft, which is OpenAI’s biggest backer, is also participating in the round. Microsoft declined to comment. (CNBC)

Smart thinking from OpenAI, with the leak of the news that they are exploring new funding only an hour before NVIDIA announces results that are expected to be strong. With plenty of news coverage anticipated on the chip maker cementing its position as the world's second most valuable company, it's an opportunity for OpenAI to slipstream in the wake of even more AI business coverage - and seem like a positive bargain even at its new valuation. Corporate communications is a game of chess, not checkers. When done well, it is 100% additive to valuations, whether you're a private organization or a public company. #corporatecommunications

$1,000,000,000,000 in CapEx is coming to #AI. With less than an hour until $NVDA earnings, this is the next phase of the bull market ?? An absolute gold rush is upon us as transformation occurs in all aspects of digital. That’s why billions more will now flow to OAI. ?? https://lnkd.in/gr774WKg

Exclusive: OpenAI is in talks for a new funding round that would value the ChatGPT maker above $100 billion.