Bloomberg: Nvidia joins OpenAI's latest round of funding talks

Authors: Mark Gurman, Dina Bass, Katie Roof, Edward Ludlow, Bloomberg; Translators: Baishui, Golden Finance

Nvidia Corp., the world’s largest chipmaker, has discussed joining a funding round for OpenAI that would value the artificial intelligence startup at more than $100 billion, according to people familiar with the matter.

Apple Inc. and Microsoft Corp. are also in talks to participate in the financing, the people said. Because the talks are private, the people asked not to be named. Bloomberg reported earlier this week that the round will be led by Thrive Capital, which will invest about $1 billion. Nvidia has discussed investing about $100 million, two people familiar with the matter said. If the talks progress, it would mean three of the most valuable tech companies backing OpenAI, maker of the groundbreaking ChatGPT chatbot. Microsoft is already OpenAI's largest funder, with an investment of about $13 billion. The influence of big tech companies on artificial intelligence is coming under increasing scrutiny, with regulators in both the European Union and the United States expressing concerns about Nvidia's dominance in AI chips and Microsoft's close relationship with OpenAI. Microsoft has tightly integrated OpenAI’s services into its Windows and Copilot AI platforms — betting the features will help drive growth.

Apple also has ties to OpenAI. The iPhone maker is adding ChatGPT to its new suite of AI features, Apple Intelligence. The company also planned to serve as a board observer at OpenAI, along with Microsoft, but those plans were scrapped in July.

Nvidia, meanwhile, provides key infrastructure needed to develop and run AI tools like ChatGPT. It is the largest maker of so-called AI accelerators, and its sales have soared over the past two years.

In Nvidia’s latest quarterly report, released Wednesday, revenue more than doubled to $30 billion. The company forecast even higher sales for the current quarter, beating analysts’ average estimate, and the stock fell even as investors have grown accustomed to blowout results.

OpenAI Chief Financial Officer Sarah Friar told employees in a memo Wednesday that the company is seeking new capital, but gave no details, according to people familiar with the matter. The company has been discussing raising money at a valuation of $100 billion or more since at least December, Bloomberg News has reported.

The financing would bolster one of the world’s most valuable venture-backed startups. ChatGPT’s runaway success has also set off an arms race among tech companies that are integrating AI technology into their products and funding other promising startups.

OpenAI will use the funding to acquire more computing power and fund other operating expenses, Friar said in a memo to employees, according to people familiar with the matter.