Apple has reportedly pulled out of discussions to join OpenAI’s upcoming funding round.
This funding round is expected to raise as much as $6.5 billion.
Microsoft, which has already invested $13 billion into OpenAI, is expected to add another $1 billion in this round.
Apple has reportedly pulled out of discussions to join OpenAI’s upcoming funding round, which aims to raise as much as $6.5 billion. This unexpected move comes just before the round is set to close next week. Apple’s participation would have marked a notable investment from the iPhone maker in another major company, sparking interest among industry watchers.
According to a source familiar with the situation, Apple recently dropped out of the talks, despite initial plans to be involved, reports The Wall Street Journal. The funding round, led by venture capital firm Thrive Capital, has attracted other big names in the tech industry. Microsoft, which has already invested $13 billion into OpenAI, is expected to add another $1 billion in this round. Nvidia, known for its AI and graphics processing technology, has also been in talks to join.
Also read: Nvidia, Apple and Microsoft in talks to invest in OpenAI
Besides Microsoft, investment firms like Tiger Global Management and MGX, a company backed by the United Arab Emirates, are also considering participating in the round. Thrive Capital is expected to contribute around $1 billion.
However, it’s important to note that it’s possible that participants and their investment amounts could change before the round closes. Some investors may adjust their contributions or pull out entirely, much like Apple has done.
OpenAI, the company behind the popular AI tool ChatGPT, is also undergoing a significant corporate transformation. Originally structured as a nonprofit, OpenAI is transitioning to a for-profit company. This change, which was encouraged by many of the investors in the funding round, adds complexity to the process. If OpenAI fails to complete the transformation within two years, investors from this round can request their money back.
While Apple’s exit from these talks may raise questions, other tech giants seem to remain committed to supporting OpenAI’s future growth, as AI continues to play a crucial role in shaping the tech industry.
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Ayushi Jain
Tech news writer by day, BGMI player by night. Combining my passion for tech and gaming to bring you the latest in both worlds. View Full Profile
