Apple Discusses Participation in OpenAI Investment... Big Tech AI Arms Race Heats Up

WSJ Report
"Strengthening Collaboration with OpenAI to Gain AI Advantage"

Apple, a latecomer in artificial intelligence (AI), is considering participating as an additional funding investor in OpenAI, the developer of 'ChatGPT.'

[Image source=AFP Yonhap News]

On the 29th (local time), the Wall Street Journal (WSJ), citing sources, reported that Apple is discussing this plan as part of strengthening cooperation with OpenAI to gain a competitive edge in AI services.

Earlier, WSJ reported that OpenAI is discussing additional funding led by the well-known U.S. venture capital firm Strive Capital. Strive Capital plans to invest $1 billion (approximately 1.33 trillion KRW), and Microsoft (MS), OpenAI's largest existing investor, is also expected to make additional investments. Among them, Apple, which recently decided to cooperate with OpenAI in AI services, is also considering participating as a new investor to provide funding. However, the amount Apple and MS will invest in OpenAI as new funds has not been disclosed.

Apple's participation in OpenAI investment is seen as a move to secure AI competitiveness, where it has relatively lagged behind. Unlike MS and Google, which are leading the AI market, Apple is evaluated as having weaker competitiveness. Accordingly, at the 'Annual Worldwide Developers Conference (WWDC) 2024' last June, Apple announced the introduction of ChatGPT by unveiling its first AI system, 'Apple Intelligence,' signaling cooperation with the frontrunner OpenAI. In July, Apple also obtained observer status on OpenAI's board of directors.

If OpenAI succeeds in this additional funding, it will be the largest external capital raise since receiving $10 billion (approximately 13.33 trillion KRW) from MS in January last year. MS has invested $13 billion (approximately 17.33 trillion KRW) since 2019 and currently owns 49% of OpenAI's shares. OpenAI's corporate value, currently estimated at over $100 billion (approximately 133.3 trillion KRW), is also expected to increase further once the additional funding is completed.

With Apple expected to invest in OpenAI following MS, the AI arms race among big tech companies in Silicon Valley is anticipated to intensify. Additionally, as Apple seeks to strengthen cooperation with OpenAI, where MS is the largest shareholder, there is speculation that a rivalry may arise between MS and Apple, who are in a competitive relationship.