Tech giants Apple (AAPL) and Nvidia (NVDA) are reportedly in discussions to invest in OpenAI, according to an exclusive Wall Street Journal report. Such a move would likely strengthen their connection to a key player in the ongoing artificial intelligence race. This investment would be part of a new fundraising round for OpenAI, which is expected to value the creator of ChatGPT at over $100 billion.
Earlier this week, the WSJ reported that Thrive Capital, a venture capital firm, is expected to invest $1 billion. Microsoft (MSFT), which already holds a 49% stake in OpenAI, may further increase its investment. Since 2019, MSFT has invested $13 billion into OpenAI.
Why Is OpenAI Seeking Additional Investment?
OpenAI is in need of additional capital. According to the report, OpenAI generated over $3.4 billion in annualized revenue earlier this year but is projected to incur losses of $5 billion by the end of this year due to its aggressive expansion in AI training and staffing.
Furthermore, OpenAI spent $100 million developing ChatGPT-4 and is now working on an even more advanced version, requiring continued heavy investment to stay ahead in the generative AI race.
OpenAI Is a Key Player in AI for AAPL
OpenAI’s technology is deeply interconnected with both Apple and Nvidia. The company primarily relies on Nvidia’s graphics processing unit (GPUs) to run and train its generative AI models. Meanwhile, Apple has already agreed to integrate ChatGPT into iOS as part of its upcoming suite of AI features called Apple Intelligence. Apple’s interest in investing in OpenAI indicates its interest in securing access to this cutting-edge technology.
Which Is the Best Artificial Intelligence Stock?
We used TipRanks’ Stock Comparison tool for Best Artificial Intelligence stocks and filtered stocks that have earned a Strong Buy consensus rating from Wall Street analysts. Based on the results below, these are the best AI stocks to buy, according to analysts.
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