Apple Might Back OpenAI, With Microsoft Already in Play

But first, can I get in on that round too?

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The big story

Apple and Nvidia have OpenAI fever

Who isn’t interested in investing in OpenAI?

Two of the biggest tech companies in the world are reportedly looking to join the startup’s newest funding round, which values it at more than $100 billion.

The Wall Street Journal first reported Apple’s interest in the round, which was quickly followed just over an hour later by a Bloomberg story that Nvidia, too, would like in on the action.

And let’s not forget Microsoft. The longtime OpenAI backer, which has poured roughly $13 billion into the startup, is also reportedly involved in the latest round.

The news comes a day after the initial report of the funding being led by Josh Kushner’s Thrive Capital with a $1 billion investment. (It’s been a busy month for Kushner, who also spent almost $30 million on a legendary Malibu beach house.)

It’s not just money coming in. The WSJ also reported some OpenAI investors are looking to sell their shares.

The reports show how tech’s biggest players are picking sides and placing bets on the companies they view as the future in an AI ecosystem bound to consolidate.

Apple already has ties to OpenAI with ChatGPT being incorporated into its products. But it also seemed open to partnering with other players in the space. (In March, it was rumored to be mulling a deal with Google.)

Investing in OpenAI doesn’t necessarily mean Apple can’t work with other players. Microsoft is building its own AI model separate from OpenAI. But an investment makes clear there is a financial incentive for Apple to see OpenAI remain at the top.

The three biggest companies in the world want to invest in your company. What could possibly go wrong?

Adding so much firepower to one’s balance sheet is obviously good, but it’s also bound to draw Washington’s attention.

Everyone is already on edge about the threat of AI. And OpenAI and CEO Sam Altman haven’t done a great job of calming nerves. Add in the fact regulators have started cracking down on Big Tech for what they view as monopolistic tendencies, and you can see where this is going.

A minority investment isn’t the same as an outright acquisition, so there is some legal wiggle room. But investments like these will raise eyebrows as some lawmakers will likely want to avoid more consolidation of power.

Meta, Amazon, Anthropic, and, most notably, Google all remain in the AI race. But Apple and Nvidia’s interest in OpenAI makes clear it’s time to start picking sides.

News brief

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The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Jordan Parker Erb, editor, in New York. Hallam Bullock, senior editor, in London. Milan Sehmbi, fellow, in London. Amanda Yen, fellow, in New York.