Apple is in discussions to invest in artificial intelligence startup OpenAI, joining a funding round that could value the company at over $100 billion.
The Wall Street Journal reports that Apple is reportedly in talks to invest in OpenAI, the artificial intelligence startup behind the popular ChatGPT language model, as part of a new multibillion-dollar funding round. The potential investment would further strengthen the ties between the two companies, following their recent partnership announcement for Apple’s new AI initiative called Apple Intelligence.
According to people familiar with the matter, the funding round is being led by venture capital firm Thrive Capital and is expected to value OpenAI at more than $100 billion. Microsoft, a key investor in OpenAI since 2019, is also anticipated to participate in this round. The exact investment amounts from Apple and Microsoft have not been disclosed.
The news comes just months after Apple revealed OpenAI as the first official partner for Apple Intelligence at its annual developer conference in June. Apple Intelligence is a system designed to integrate AI features across Apple’s operating system, including an enhanced Siri voice assistant, text proofreading capabilities, and the ability to create custom emojis. While some tasks will be handled by Apple’s proprietary AI technology, more complex functions like generating written messages will rely on OpenAI’s ChatGPT.
Apple’s decision to invest in OpenAI underscores the company’s commitment to securing access to cutting-edge AI technology. OpenAI faces intense competition from other AI startups and tech giants, but ChatGPT remains a market leader in the field. Apple has also expressed interest in partnering with other companies, such as Google and its Gemini generative AI model, as well as AI startups like Anthropic and Perplexity.
However, investing directly in OpenAI could potentially complicate Apple’s efforts to maintain a neutral stance as a partner with other AI companies. This move is also unusual for Apple, which rarely invests in startups. In the past, Apple has made investments in manufacturing partners to secure component supplies for its devices, as well as strategic investments in SoftBank’s Vision Fund and Chinese ride-hailing startup DiDi Chuxing.
Over the past 18 months, Apple has significantly increased its internal AI investments as it strives to develop its own capabilities in the field. The company is expected to showcase new AI tools as a standout feature of its next-generation iPhones, set to be unveiled at an event next month.
As the race to dominate the AI landscape intensifies, Apple’s potential investment in OpenAI shows that the company is determined to stay at the forefront of this rapidly evolving technology. The partnership between the two companies is expected to play a crucial role in shaping the future of AI integration across Apple’s products and services.
Read more at the Wall Street Journal here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
