- Apple is reportedly contemplating investing in OpenAI throughout its subsequent fundraising spherical.
- This transfer follows Apple’s June announcement of a partnership with OpenAI for AI options.
Apple could be late to the substitute intelligence occasion, but it surely’s certain doubling down.
At its Worldwide Developer Conference in June, the tech large introduced that it will accomplice with OpenAI to carry a few of its AI options to Apple Intelligence. Then, on Thursday, The Wall Street Journal reported that Apple is contemplating investing within the ChatGPT maker throughout its subsequent funding spherical — one which’ll worth OpenAI at greater than $100 billion.
Apple’s transfer could additional solidify its enterprise relationship with OpenAI, but it surely may tread on the toes of longtime rival Microsoft, which has reportedly invested $13 billion in OpenAI. It additionally factors to OpenAI’s ongoing dominance of the AI area regardless of a yr of headwinds — and the way eager Big Tech (and others) are to get on its dance card.
While Jacob Bourne at Emarketer, a sister firm to Business Insider, stated {that a} doable Apple funding is an “uncharacteristic plan” for the corporate, it “underscores the fierce competitors and excessive stakes within the AI race.”
“While this funding could dilute Microsoft’s position as OpenAI’s major benefactor, it displays the shifting dynamics within the AI panorama the place main gamers, together with Microsoft, are diversifying their partnerships to remain aggressive,” Bourne stated.
Other potential buyers on this funding spherical embrace Joshua Kushner’s Thrive Capital (once more) and Microsoft (once more), the Journal reported. AI chipmaker Nvidia, one other present darling of the investing world, has additionally mentioned becoming a member of the funding spherical, in line with Bloomberg.
Still, in line with the Journal, Microsoft’s funding in OpenAI at present provides it the proper to a 49% share of OpenAI’s income. This may complicate any returns for Apple and others.
Apple and Microsoft have a rivalry that dates again a long time to when founders Steve Jobs and Bill Gates had been nonetheless on the helm. Both tech giants are valued at over $3 trillion, and the AI growth is simply spurring their race to a $4 trillion market cap.
When Apple’s partnership with OpenAI was introduced in June, Bloomberg reported that the iPhone maker wouldn’t be paying OpenAI for integrating ChatGPT into Siri.
Meantime, Microsoft CEO Satya Nadella was reportedly involved concerning the deal’s impression.
Both Microsoft and Apple had been set to have observer roles on OpenAI’s board, however the two firms reportedly determined in opposition to it as a consequence of antitrust issues.
When Apple introduced its AI enterprise at WWDC, it was already behind rivals like Google, Microsoft, and extra in debuting its personal AI assistant.
But by funding OpenAI, Apple would be capable to “hold tempo with different tech giants,” Bourne stated.
