Sources: Nvidia, Apple, and Microsoft, the three most valuable tech companies, are in talks to participate in a funding round that would value OpenAI at $100B+

- Apple, Microsoft also have been in talks about participating — Financing would value OpenAI at more than $100 billion

Bloomberg 2024-08-30

Context & Ripple Effects

The discussions extend a financing arc in which Microsoft had already explored additional backing for OpenAI and OpenAI had previously pursued a valuation above $100 billion in earlier fundraising talks. The new element is the potential convergence of a major cloud partner, a leading chip supplier and Apple around the same round.

The reported target also became a concrete benchmark when OpenAI later raised $6.6 billion at a $157 billion valuation, showing how quickly frontier-model funding expectations were escalating.

First-order effects

The talks give OpenAI a potential path to add Nvidia, Apple and Microsoft to a round priced above $100 billion, while leaving commitment size and final participation unresolved.
A $100 billion-plus target sets an immediate valuation reference point for OpenAI’s negotiations with these strategic investors and other prospective backers.

Second-order effects

If the companies invest, their roles as platform, cloud and chip partners would become more financially intertwined with OpenAI, raising the strategic importance of its model roadmap and compute demand.
Rival AI developers and infrastructure providers would face a clearer signal that access to large strategic balance sheets—not conventional venture funding alone—is becoming central to competing at the frontier.

Third-order effects

The episode points toward frontier AI development being financed by a small group of companies that also control key distribution, cloud and compute layers; whether that concentration persists depends on the terms and durability of such partnerships.
As suppliers and customers become investors in the same labs, scrutiny of governance, partner dependence and competition between AI platforms is likely to become more consequential.

The trend: Frontier AI is moving toward capital structures in which the companies supplying compute and distribution increasingly finance the labs that drive demand for both.

Discussion

@crumbler Casey Newton on threads
Great to see the tech industry coming together to support a nonprofit — RE: https://www.threads.net/...
@zitron.bsky.social Ed Zitron on bluesky
$125bn valuation - what a joke. there's a real chance this round is like, led by Thrive, apple, Nvidia, Microsoft, maybe $3bn to $5bn. I don't imagine a ton of regular VCs have the juice here unless this is like an anthology round where everybody gives $100m like a telethon. A…
@radiobeartime.com Mark O'Neill on bluesky
This is going to be the tulip crash di tutti tulipi [embedded post]
@benbajarin Ben Bajarin on x
SLM fine tuned for specific experiences and use cases are a much better strategy for Apple for the core system level use cases that will power GenAI on device. It makes sense to use a trusted partner for the areas where an LLM is required.
@munster_gene Gene Munster on x
My take on $AAPL investing in OpenAI: 1) This is a sign that Apple is not seeing a path where it makes sense to build a competitive, full feature LLM. 2) What that means is they are going to be reliant on OpenAI, Google, and maybe even Meta to deliver about a third of their AI
@markgurman Mark Gurman on x
Nvidia, Apple and Microsoft — the three most valuable tech companies — are in talks to invest in OpenAI as part of the company's new $100 billion funding round. https://www.bloomberg.com/...
@florian4gamers Florian Mueller on x
Apple is apparently prepared to deal with regulatory agencies that will try to miscategorize any Big Tech AI deal as a merger. Regulatory fights are now in Apple's DNA.
@mgsiegler M.G. Siegler on x
Back in May... “Might we see Apple invest in OpenAI soon? I mean, definitely don't be surprised!” https://spyglass.org/...
@esyudkowsky Eliezer Yudkowsky on x
Shouldn't Elon Musk, who funded the company, get a bit of this value? How should it be legal to accept donations, turn the resulting IP into a for-profit, and just pocket the money? Where is the IRS?
@edzitron Ed Zitron on x
Very disappointing that Apple would bankroll this garbage if they do join. Be curious to hear how much. $100m it's a hedge, $1bn Tim is Cooked just like Satya and Sundar
@luke_metro @luke_metro on x
I should start a nonprofit
@autismcapital @autismcapital on x
Apple is saying they will potentially invest in OpenAI's funding round. This story ends with Apple acquiring OpenAI and Sam Altman becoming CEO of Apple, doesn't it?
@mgsiegler M.G. Siegler on x
Keep your partners close and your potential funding partners even closer... Also, a good reminder that would-be board roles aren't typically aren't free... https://spyglass.org/...
@keithdsouza Keith on x
So all three of these companies will have constant revenue while hyping it's value, lol
@dinabass Dina Bass on x
Nvidia has also talked to OpenAI about joining a funding round that would value the the AI model developer at more than $100B (along with Apple and Microsoft) https://www.bloomberg.com/... sources tell @markgurman @Katie_Roof & me
@joannastern Joanna Stern on x
Apple vs. Microsfot: The OpenAI Round https://www.wsj.com/...
@ericjackson Eric Jackson on x
$GOOG goes red on news that $AAPL might be part of OpenAI funding round
@aatilley Aaron Tilley on x
Apple is in talks to join the OpenAI funding round valuing it at $100 billion. While unusual for Apple, it's not without precedent: $1 billion into SoftBank's Vision Fund in 2017 and $1 billion into Didi in 2016. https://www.wsj.com/...
r/singularity r on reddit
Apple is in talks with OpenAI to invest in their recent funding round, valued at $100b!
r/apple r on reddit
Apple in Talks to Join New OpenAI Funding Round

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