Thursday, September 19, 2024 - 7:03 am
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Nvidia, Apple, Microsoft Plan Triple Deal That Would Value OpenAI at Up to $100 Billion

Nvidia’s results released this week failed to satisfy investors’ appetite for high-profile accounts. The problems Blackwell Superchipand the very high and unmet expectations of the most demanding analysts, have left the market hungry, which was reflected in the recent declines in Nvidia’s stock, already corrected today. However, the record revenues demonstrated the strength of Jensen Huang’s company, revealing that AI still has a lot of work to do. Nvidia, Apple and Microsoft, members of the Magnificent SevenThey know this well, which is why they are considering participating in an OpenAI funding round that would significantly increase the value of the creator of ChatGPT.

In Silicon Valley, they are not only trained in computer science: they also know that there is strength in numbers. This week, Nvidia negotiated OpenAI enters funding roundalongside Apple and Microsoft, which would value the company at $100 billion. At the forefront of this process is Prosperous Capitalizationa company that plans to invest $1 billion. For its part, Nvidia’s contribution would amount to around $100 million.

The contribution of the three Magnificas to this round of financing for Sam Altman’s company would seal a triple deal around a company that has served the public’s interests well. Three big ones. On the one hand, Microsoft has not only integrated OpenAI tools into its AI platforms on Windows and Copilot. Also allocated $13 billion to the development of the organization, becoming the largest investor in OpenAI.

On the other hand, Apple included ChatGPT on its Apple Intelligence platform, which will be fully available in 2025. In addition, last July, the company led by Tim Cook rejected, along with Microsoft, a position as an observer at the general meeting. Finally, Nvidia played a key role in the development of OpenAIIn 2016, when OpenAI still had Elon Musk on its staff, the chip company donated a supercomputer to the then-nonprofit organization to help fuel its development.

Later, Nvidia supplied him with advanced chips to power OpenAI tools such as ChatGPT: that same year, Jensen Huang personally visited Sam Altman’s company offices to deliver the advanced DGX H200 processor. A gesture that was appreciated on Twitter by Greg Brockman, co-founder of OpenAI.

The plans come after Nvidia was the last of the three companies to report record results. Jensen Huang’s company reported $30 billion in revenue in its fiscal second quarter, up 122% year-over-year and beating market estimates. It also got a 168% increase in profits over one year.

In parallel, the projects for the entry of this triple agreement into the OpenAI funding cycle are arriving like a glove for said signatureThat same week, Sarah Friar, the company’s chief financial officer, sent a message to employees saying the brand was looking for new investment.

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Jack Wilshere
Jack Wilshere
My name is Jack Wilshere, and I am an author.
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