Apple Drops Out Of OpenAI's $6.5 Bn Funding Round, Microsoft To Invest $1 Bn

Apple has ended talks to participate in OpenAI's USD 6.5 billion investment round, as per the Wall Street Journal (WSJ). The round, which is anticipated to finish next week, has piqued the interest of major technology companies such as Microsoft and Nvidia, with OpenAI's valuation expected to exceed USD 100 billion.

According to WSJ, Apple, one of the world's major technological corporations, has withdrawn its interest in participating in OpenAI's future fundraising round. The financing, which could raise approximately USD 6.5 billion, is scheduled to close next week. The story, which cited a source familiar with the matter, did not explain why Apple withdrew from the negotiations.

Despite Apple's exit, other tech titans such as Microsoft and Nvidia are still in talks to invest in the AI business that powers ChatGPT. Microsoft, which has already invested USD 13 billion in OpenAI, is expected to contribute an extra USD 1 billion to the latest round. OpenAI declined to comment on the conversations, and Apple has yet to react to demands for comment.

OpenAI's valuation has risen, and the company's worth could approach USD 100 billion. This huge valuation is driven by the AI arms race that began with OpenAI's ChatGPT debut in late 2022. The enormous success of the AI tool spurred corporations in a variety of industries to spend extensively in artificial intelligence, hoping to remain competitive and acquire a larger portion of the booming AI industry.

Apple's prior involvement in the funding talks, which were originally revealed by the Wall Street Journal last month, indicated the tech giant's rising interest in AI developments. However, with Apple out of the picture, the spotlight remains on other significant investors like as Microsoft, whose continuous support is pressing upon the relevance of AI technology in the competitive digital scene.