Apple is cutting in on Microsoft's dance with OpenAI

• Apple is reportedly considering investing in OpenAI during its next fundraising round.
• This move follows Apple's June announcement of a partnership with OpenAI for AI features.
• Microsoft, a longtime Apple rival, has already invested in OpenAI, complicating potential returns.

Apple might be late to the artificial intelligence party, but it's sure doubling down.

At its Worldwide Developer Conference in June, the tech giant announced that it would partner with OpenAI to bring some of its AI features to Apple Intelligence. Then, on Thursday, The Wall Street Journal reported that Apple is considering investing in the ChatGPT maker during its next funding round — one that'll value OpenAI at more than $100 billion.

Apple's move may further solidify its business relationship with OpenAI, but it could tread on the toes of longtime rival Microsoft, which has reportedly invested $13 billion in OpenAI. It also points to OpenAI's ongoing dominance of the AI space despite a year of headwinds — and how keen Big Tech (and others) are to get on its dance card.

While Jacob Bourne at Emarketer, a sister company to Business Insider, said that a possible Apple investment is an "uncharacteristic plan" for the company, it "underscores the fierce competition and high stakes in the AI race."

"While this investment may dilute Microsoft's role as OpenAI's primary benefactor, it reflects the shifting dynamics in the AI landscape where major players, including Microsoft, are diversifying their partnerships to stay competitive," Bourne said.

Other potential investors in this funding round include Joshua Kushner's Thrive Capital (again) and Microsoft (again), the Journal reported. AI chipmaker Nvidia, another current darling of the investing world, has also discussed joining the funding round, according to Bloomberg.

Still, according to the Journal, Microsoft's investment in OpenAI currently gives it the right to a 49% share of OpenAI's profits. This could complicate any returns for Apple and others.

Apple and Microsoft have a rivalry that dates back decades to when founders Steve Jobs and Bill Gates were still at the helm. Both tech giants are valued at over $3 trillion, and the AI boom is only spurring their race to a $4 trillion market cap.

When Apple's partnership with OpenAI was announced in June, Bloomberg reported that the iPhone maker would not be paying OpenAI for integrating ChatGPT into Siri.

Meantime, Microsoft CEO Satya Nadella was reportedly concerned about the deal's impact.

Both Microsoft and Apple were set to have observer roles on OpenAI's board, but the two companies reportedly decided against it due to antitrust concerns.

When Apple announced its AI venture at WWDC, it was already behind competitors like Google, Microsoft, and more in debuting its own AI assistant.

But by funding OpenAI, Apple would be able to "keep pace with other tech giants," Bourne said.