Apple, Nvidia & Microsoft to bail out OpenAI after reports of impending bankruptcy

Apple and Nvidia have reportedly shown interest in joining the next funding round of the artificial intelligence startup OpenAI.

OpenAI is funded by some of the biggest names in the industry, including Microsoft. And now it’s being reported that Apple and Nvidia will join too.

The Wall Street Journal reported that the investment would be part of a new OpenAI fundraising round that would put its valuation above $100 billion. Venture capital firm Thrive Capital is reported to lead the round, which will total several billion dollars, and Microsoft is also expected to participate.

It remains unknown how much Apple, Nvidia, or Microsoft will invest in the company. Microsoft is currently the biggest investor in AI company, owning a 49% share of the startup’s profits after investing $13 billion since 2019, according to the report.

OpenAI

Microsoft uses OpenAI’s products in its enterprise services, such as Azure, and also integrates them into its Edge browser and Bing search product. Apple has also signed a deal with OpenAI to integrate its chatbot into the Apple Intelligence suite, allowing Siri to answer complex questions.

OpenAI could use these investments if the bankruptcy rumors are true.

In July, The Information reported that OpenAI is expected to spend around $7 billion on AI training and another $1.5 billion on staffing. These hefty expenses might push the company to raise more funds within the next year just to keep going, according to the report.

However, the fact that Apple is investing in OpenAI could mean the iPhone maker doesn’t plan to go all-in on its own LLMs and AI products. Early testers of Apple’s Intelligence suite have found that its AI isn’t quite there yet, and there are even rumors that the iPhone 16 might launch without it.

It’s not typical for Apple to invest in something that could compete with its own software services. Plus, with OpenAI getting backing from major tech giants, Google is in a tricky spot trying to catch up with its own AI products.