Apple Backs Out of OpenAI’s $6.5 Billion Funding Round
2 years ago 2 min read
Share:
According to a fresh story from The Wall Street Journal, Apple is no longer planning to invest in OpenAI. This occurred on the eve of OpenAI’s $6.5 billion funding round, which still includes Microsoft and Nvidia as potential investors.
Apple withdrew from the talks just days before the round was set to finish, despite the iPhone maker’s initial strong interest in participating just a month ago.
This development comes at a time when OpenAI is experiencing instability, with a wave of high-profile executive departures raising concerns about deeper organisational difficulties.
Key executives, some of whom played critical roles in OpenAI’s rapid development, have lately left the firm, raising concerns about potential leadership conflicts or strategic disagreements that could jeopardise the company’s future.
Other tech titans are still in talks to invest in the artificial intelligence business.
According to individuals familiar with the subject, Microsoft intends to invest $1 billion, adding to its earlier $13 billion investment. Nvidia, a chip giant, is also exploring a $100 million investment, Bloomberg earlier reported.
The investors and quantities for the round may change as negotiations go.
Apple representatives did not immediately react to Business Insider’s request for comment. A spokeswoman for OpenAI declined to respond.
Microsoft is already a major investor in OpenAI, owning 49% of the company’s income. According to the most recent source, Microsoft intends to spend an additional $1 billion in OpenAI during this round.
We earlier reported that Apple has unveiled a series of hearing health upgrades for the AirPods Pro 2, including a new “clinical grade” hearing aid feature for people with mild to moderate hearing loss.
