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· Posted on
September 2, 2024

OpenAI’s got some new suitors as Apple and Nvidia cozy up to the ChatGPT creator

Reports have revealed that Nvidia and Apple are considering investing in OpenAI’s latest capital raise, which would value the biz at $100 billion USD.

What's the key learning?

  • Many companies are now exploring the possibilities of integrating AI into their products and services and this drove Nvidia's sales of AI chips to soaring profits.
  • Being one of the firsts to get its hand on a new technology has its benefits, and this is what Apple and Nvidia is trying to achieve.
  • With two behemoths investing into OpenAI, this will secure Apple and Nvidia's access to cutting edge technology

👉 Background: OpenAI is the company behind the extremely-powerful, sometimes-hallucinogenic ChatGPT. Microsoft was one of the earlier investors in OpenAI, and now holds 49% stake at the AI company.

👉 What happened: Reports have revealed that Nvidia and Apple are considering investing in OpenAI’s latest capital raise, which would value the biz at $100 billion USD — a 20% uplift on its valuation from just 8 months ago.

👉 What else: Nvidia designs and supplies the AI chips to power OpenAI, and Apple is using OpenAI for its new chatbot on iPhone called Apple Intelligence. So it seems like a very strategic investment for these two companies.

What's the key learning?

💡Strategic investments are critical in the business world because they allow companies to leverage each other's strengths.

💡For Apple, investing in OpenAI could help close the AI gap with competitors like Google and Microsoft. For Nvidia, it's about securing a major customer for their AI chips. And investing $100 million into OpenAI is pocket-change for both Apple and Nvidia.

💡Strategic investments aren't uncommon, especially for tech companies. For example, back in 2015, Google’s parent company Alphabet invested $900 million into SpaceX to get exposure to satellite-based internet.

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