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These Two Big Swinging Tech Giants Are Set to Get in Bed with Open AI ($100 Billion Valuation)

By Stocks News   |   Aug 30, 2024 at 11:27 AM EST   |   Stock Market News
These Two Big Swinging Tech Giants Are Set to Get in Bed with Open AI ($100 Billion Valuation)

So it’s Friday. You’ve made it through another week of the dreadful tech madness, and as a reward, investors are sinking their teeth into the massive news surrounding two of the worlds largest bandwagon trains: Apple and Nvidia

(Source: LinkedIn) 

In short, it appears that both of these tech giants are no longer content with just being the kings of their respective domains— as they’re now eyeing a piece of OpenAI, the hottest twin-peak broad in the AI world. Now keep in mind, this isn’t just another play for Apple and Nvidia to become passive sugar daddies. No, no, no… we’re talking about a multi-billion dollar injection that could easily catapult OpenAI’s valuation to $100 billion. 

(Source: TechCrunch) 

With that said, as most investors already know, this isn’t Apple’s usual playbook. The company, which typically sticks to securing its supply chain and keeping its ecosystem locked down tighter than Fort Knox, seems ready to roll the dice on a major startup investment. So why the sudden shift? 

Well maybe, it’s because Apple’s tired of watching Google and Microsoft grab all the AI headlines while Siri is still stuck trying to figure out basic commands like, “Yo Siri, text Jamal and tell him we finna cop some ZYN on the way der”

(Source: Memes) 

Meaning the potential buy-in to OpenAI would give Apple access to some of the most advanced AI tech out there, (aka, exponentially increasing the leverage of Apple Intelligence) not to mention a strategic partnership that could help it finally close the gap in the AI arms race.

On the other hand, Nvidia is diving into this deal like it’s their natural habitat. As the chipmaker that significantly powered the AI revolution in 2024, Nvidia knows that securing a stake in OpenAI isn’t just about boosting profits—it’s about cementing their position as a cornerstone of the AI infrastructure.

(Source: DAC) 

Every investor and their grandma already knows Nvidia is the go-to for the computational muscle needed to train large AI models, and this investment would only tighten its grip on the market.

But here’s where things get really interesting: Microsoft is already balls deep into OpenAI, having dropped $13 billion and securing a 49% stake in the company’s profits. So, with Apple and Nvidia joining the fray, this could get a little crowded. Think, too many chiefs and not enough Indians at the table.

(Source: Giphy) 

In addition, Apple’s move, however, raises some eyebrows. Historically, the company has maintained a certain distance from the startup world, focusing instead on building out its own capabilities. But with AI rapidly becoming the defining technology of the decade, it seems even Apple can’t afford to sit on its hands (we’ve already seen that god awful mistake from our boys over at Intel).

So the question now is how this will affect its relationships with other AI firms. Apple’s traditionally been a neutral player, but this investment could definitely complicate things when it comes to existing relationships - but hey, when you want to be the best… you gotta play with the best. Which is exactly what Apple is set out to do with this next funding round. 

(Source: Giphy) 

As for OpenAI though, well it’s clear they’re sitting pretty. With over 200 million weekly active users on ChatGPT, they’re the darling of the AI world—and they know it. This funding round isn’t just about raising capital; it’s about securing the resources to maintain their leadership in the space and continue pushing the boundaries of what AI can do. Translation: American jobs are f***ked. 

(Source: Giphy) 

In the end, we are definitely breaching a critical moment in the AI race. With Apple, Nvidia, and Microsoft all vying for influence, the stakes couldn’t be higher. Especially as they all cat fight to become the QB1 in the next phase of technological innovation.  

So with that, get your popcorn ready my friends, because things are only getting spicier and spicier when it comes to AI. And from this funding round, it’s clear that OpenAI just got two more big swinging d***ks giants in its bed with ‘em. 

As always, keep your eyes peeled on these two leaders of the market, stay safe and frosty! Until next time…

Stocks.News holds positions in Apple, Microsoft, and Google as mentioned in the article. 

 

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Disclaimer: Information provided is for informational purposes only, not investment advice. We do not recommend buying or selling stocks. Stock price discussions are based on publicly available data. Readers should conduct their own research or consult a financial advisor before investing. Owners of this site have current positions in stocks mentioned thru out the site, Please Read Full Disclaimer for details Here https://app.stocks.news/page/disclaimer


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