Apple Drops Out of Talks to Join OpenAI Investment Round: Report

Other firms, such as Microsoft and Nvidia, have also been in talks to participate in OpenAI's anticipated funding round.

By Reuters | Updated: 30 September 2024 12:34 IST

Highlights

OpenAI is reportedly working to remove non-prfit control
OpenAI's funding round is expected to close in the first week of October
Ahead of funding, some top executives have resigned from OpenAI

OpenAI sparked AI arms race with its launch of ChatGPT in late 2022

Photo Credit: Reuters

Apple has left negotiations to participate in an OpenAI funding round expected to raise about $6.5 billion (roughly Rs. 54,464 crore), the Wall Street Journal said on Friday.

The tech giant recently fell out of the talks for the round, set to close next week, the newspaper said, citing a person familiar with the matter.

Other firms, such as Microsoft and Nvidia, have also been in talks to participate, the report said, adding that Microsoft was expected to invest about $1 billion (roughly Rs. 8,379 crore) after having already poured $13 billion (roughly Rs. 1,08,928 crore) into the company.

OpenAI Expects to See $11.6 Billion in Revenue Next Year

OpenAI declined to comment, while Apple did not immediately respond to a request for comment.

Last month, the Journal first reported that Apple was in the talks, as part of OpenAI's new fund-raising effort that could value the ChatGPT maker above $100 billion (roughly Rs. 8,37,996 crore).

The high valuation is a result of the AI arms race OpenAI sparked with its launch of ChatGPT in late 2022, spurring companies across industries to invest billions in the technology to stay ahead of the competition and capture market share.