Microsoft, Apple, and NVIDIA are reportedly joining forces to bail out OpenAI, the parent company of ChatGPT, from financial troubles. According to a report by CNBC, OpenAI is in talks to raise funding, which could push its market valuation to over $100 billion.
Last month, reports emerged indicating that OpenAI was on the brink of bankruptcy within 12 months, with projected losses of $5 billion. Despite generating approximately $3.5 billion in revenue and having discounted access to Microsoft’s Azure services, OpenAI may still need additional funding to stay afloat.
The company’s success can be attributed to the launch of ChatGPT and its broad adoption, as well as the release of advanced AI models with image and video generation capabilities like DALL-E 3 and Sora. Microsoft, OpenAI’s largest investor, is reportedly participating in the round of funding, although it’s unclear how much the company will invest.
Apple and NVIDIA may also join OpenAI’s funding round, which could further push its market capitalization above $100 billion. The involvement of these tech giants underscores their deep ties with OpenAI and their reliance on its technology to power their own AI initiatives.
OpenAI has made significant strides in recent years, growing its valuation from $29 billion in 2023 to $80 billion earlier this year. Its market value could potentially rival that of its partners in the foreseeable future. As more companies enter the AI landscape, demand for AI chips is skyrocketing, prompting a need for alternative sources.
Source: https://www.windowscentral.com/software-apps/microsoft-apple-and-nvidia-will-reportedly-bail-out-openai-from-the-shackles-of-bankruptcy