Apple is in talks to invest in artificial intelligence startup OpenAI, joining a funding round that could value the company at more than $100 billion.
of The Wall Street Journal Reports Apple is reportedly in talks to invest in OpenAI, the artificial intelligence startup behind the popular ChatGPT language model, as part of a new multi-billion dollar funding round. The potential investment would further strengthen ties between the two companies, following their recent announcement of a partnership on Apple's new AI initiative, “Apple Intelligence.”
The funding round was led by venture capital firm Thrive Capital and is expected to value OpenAI at more than $100 billion, according to people familiar with the matter. Microsoft, which has been a major investor in OpenAI since 2019, is also expected to participate in the round. The exact investment amounts from Apple and Microsoft were not disclosed.
The news comes just months after Apple announced OpenAI as its first official partner for Apple Intelligence at its annual developers conference in June, a system designed to integrate AI capabilities across Apple's operating systems, including an improved Siri voice assistant, text proofreading and the ability to create custom emoji. While some tasks will be handled by Apple's own AI tech, more complex features like generating handwritten messages will rely on OpenAI's ChatGPT.
Apple's decision to invest in OpenAI underscores the company's commitment to ensuring access to cutting-edge AI technology. While OpenAI faces stiff competition from other AI startups and large tech companies, ChatGPT remains the market leader in the field. Apple has also expressed interest in partnering with other companies, such as Google and its Gemini generative AI models, as well as AI startups such as Anthropic and Perplexity.
But investing directly in OpenAI could complicate Apple's efforts to remain neutral as a partner with other AI companies. It would also be an unusual move for Apple, which rarely invests in startups. In the past, Apple has invested in manufacturing partners to secure supplies of parts for its devices, as well as making strategic investments in SoftBank's Vision Fund and Chinese ride-hailing startup Didi Chuxing.
Over the past 18 months, Apple has been working to develop its own AI capabilities and has significantly increased its internal AI investments, and at an event next month, the company plans to unveil new AI tools as a flagship feature of its next-generation iPhones.
As the race for dominance in the AI field intensifies, Apple's potential investment in OpenAI signals the company's determination to remain at the forefront of this rapidly evolving technology. The partnership between the two companies is expected to play a key role in shaping the future of AI integration across Apple's products and services.
Learn more of The Wall Street Journal here.
Lucas Nolan is a reporter for Breitbart News covering free speech and online censorship.
