Apple in talks to join OpenAI’s $100 billion funding round: WSJ report

Apple is in discussions to invest in OpenAI as part of a new funding round that could value the AI company at over $100 billion, according to a report by Wall Street Journal that cited sources aware of the matter.

This development follows news that venture capital firm Thrive Capital is planning to invest approximately $1 billion in OpenAI, leading the round.

OpenAI's long-time backer, Microsoft, is also expected to participate in the investment, though the specific amounts Apple and Microsoft will contribute have not been disclosed, the WSJ report said.

This potential investment underscores the growing importance of artificial intelligence in the tech industry, as companies like Apple look to strengthen their position in a rapidly evolving market.

OpenAI's new funding round expected to secure billions of dollars

OpenAI is in talks to raise a funding round that would value the artificial intelligence startup at more than $100 billion, reports have said.

This funding round is set to be OpenAI’s largest external capital infusion since January 2023, when Microsoft invested nearly $10 billion.

The news follows OpenAI’s announcement last week that it would debut a prototype of its search engine, called SearchGPT, which aims to give users “fast and timely answers with clear and relevant sources.”

Earlier this year, OpenAI's valuation skyrocketed to approximately $80 billion, a significant leap from its $29 billion valuation the previous year.

The company's annualized revenue surpassed $2 billion, driven by exponential growth that began in late 2022.

This surge followed the launch of its ChatGPT chatbot and continued with the introduction of AI-generated products for businesses, including photos and videos.

Apple's investments over the years

Apple, known primarily for its in-house innovations and acquisitions, has occasionally made direct investments in other companies.

The company invested $1 billion in Didi Chuxing, a Chinese ride-hailing company, in 2016.

This investment was seen as a strategic move to understand the Chinese market better and explore the future of transportation technology.

In 2017, Apple invested $1 billion in SoftBank's Vision Fund, which focuses on cutting-edge technology investments.

This marked a rare instance of Apple participating in a technology-focused investment fund.

Apple acquired Beats Electronics for $3 billion in 2014. While this was an acquisition, it also involved investment in the brand’s further development, particularly in the music streaming sector.

In 2018, Apple invested $600 million in Dialog Semiconductor, a company that supplied Apple with power management technology for its devices.

These investments reflect Apple’s strategic interest in technologies that complement its core business areas, including transportation, augmented reality, semiconductor technology, and audio products.

While Apple tends to acquire companies rather than make traditional equity investments, these cases illustrate its selective approach when it comes to external investments.