OpenAI, the artificial intelligence company, is set for a funding round that will see its valuation go over $1 billion. This is as per a report by Wall Street Journal
As per the report, two of the biggest tech companies, Apple and Nvidia are reportedly joining hands in the funding round.
Microsoft is also one of the biggest investors in AI.
The OpenAI's valuation is a result of the AI arms race that has come since the launch of ChatGPT in late 2022, which has made companies to invest billions in the technology to stay ahead of the competition and get hold of its market share.
Advertisement
Apple's interest in the investment comes after it unveiled a variety of AI features called Apple Intelligence. It is reported that OpenAI's ChatGPAT will help with those features.
This year, Senior Apple Executive Phil Schiller was set to join OpenAI's board as an observer in a non-voting role. However, he refused the position because of the anti-trust concerns
Nvidia, the US-based chip manufacturing company has been a key supplier of AI chips for companies worldwide. It is the supplier of OpenAI's foundational models.
Recently, the company saw its revenue for three months to the end of july reportedly double compared to its previous year, achieving a record $30 billion.
Advertisement
However, it did not prevent the company's shares from falling by 6% in New York.
Nvidia and Intel have immensely benefitted following the AI boom that has taken over the world by providing chips for companies supplying AI chips.
Nvidia achieved a valuation of ninefold within two years. Its stock market value reportedly skyrocketed to $3 trillion.
The Wall street Journal also revealed the next round of OpenAI's fund being led by Thrive Capital. It could value OpenAI at more than $100 billion.
