[NEWS] Apple withdraws from OpenAI funding round

Apple Reportedly Withdraws Investment from OpenAI.

It has been reported that Apple is pulling out of its investment in OpenAI.

OpenAI is currently in a $6.5 billion funding round and is in negotiations with companies like Microsoft and Nvidia. Microsoft plans to make an additional $1 billion investment, and the funding round is expected to close this week. In the midst of this, The Wall Street Journal (WSJ) reported that Apple has withdrawn from the investment.

According to the report, Apple has pulled out of discussions regarding its participation in OpenAI’s upcoming funding round. This unexpected move came just before the round’s conclusion. Apple’s participation was anticipated to be a significant investment by the iPhone maker in another major company, drawing interest from industry watchers.

Apple had recently announced plans to leverage OpenAI’s technology for its AI feature, Siri.

The funding round, led by venture capital firm Thrive Capital, has already seen an investment of $13 billion from Microsoft, which is set to invest an additional $1 billion in this round. Nvidia, known for its expertise in AI and graphics processing technology, is also participating, along with other investment firms like Tiger Global Management and MGX, which is backed by the United Arab Emirates.

OpenAI, the developer of the popular AI tool ChatGPT, is working on transitioning into a for-profit company. This transformation, encouraged by many of the investors in the funding round, appears to be complicating the process. If OpenAI fails to complete this transformation within two years, the investors in this round could demand a refund of their investments.

OpenAI's CTO Resigns Suddenly

Apple’s withdrawal from this funding round raises questions, but other tech giants are expected to continue supporting OpenAI’s future growth, as AI continues to play a crucial role in shaping the technology industry.

Apple has been a pioneer in AI development, particularly with Siri. By enhancing Siri, Apple may look to boost its competitiveness against OpenAI.

Recent resignations of OpenAI executives may also have influenced Apple’s decision. The sudden departure of OpenAI’s Chief Technology Officer (CTO), Mira Murati, last week could also suggest the possibility of a swift move to Apple, making this a situation worth watching closely.

Reference: The Wall Street Journal
Image: Shutterstock

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