Apple in talks to invest in OpenAI: report

This picture taken on March 25, 2024, shows the Apple logo on a smartphone in Mulhouse, eastern France. (Photo by SEBASTIEN BOZON / AFP)

Washington, United States — iPhone juggernaut Apple is in talks to invest in OpenAI, the creator of ChatGPT and the biggest name in generative artificial intelligence, a news report said Thursday.

According to the Wall Street Journal, the company founded by Steve Jobs is at the funding table as OpenAI raises more money to help meet the heavy costs of building new technology.

Reports said that OpenAI is in talks to reach a valuation of $100 billion in the funding round led by venture capital firm Thrive Capital, which will pump in one billion dollars.

READ: Apple holds talks with rival Meta over AI: report

For months, news reports have said OpenAI has been in talks to raise the capital that would make it one of the most valuable tech companies in the world.

Microsoft, which is OpenAI’s biggest investor and takes home half of the startup’s profits, is also part of the new funding round.

The entry of Apple into OpenAI’s ownership, if confirmed, would come as the company is set to announce its new iPhones on September 9 that are expected to optimize AI innovations.

In June, Apple announced that it was making OpenAI’s technology available as an option in the software for top-of-the-line iPhones, but added that AI tools made by other companies would also be available in time.

Most of the AI features used by Apple users would use the company’s own technology, but more complicated tasks would be deferred to OpenAI’s powers if the customer chose to do so.

Apple did not respond to a request for comment from AFP.