HomeInvestmentsApple No Longer Looking to Invest in OpenAI

Apple No Longer Looking to Invest in OpenAI

iPhone maker Apple is no longer looking to invest in artificial intelligence startup OpenAI according to a recent report by The Wall Street Journal.

OpenAI is currently in the midst of a funding round that would value the company at $150 billion and is hoping to raise around $6.5 billion in the process. Apple was one of the companies engaged in talks to join as an investor in ChatGPT maker but opted to back out for undisclosed reasons.

OpenAI’s current funding round is expected to wrap up at some point in October as talks with other investors are ongoing. The round is currently led by New York City-based venture capital firm Thrive Capital, which is expected to invest $1 billion.

While Apple is out, several other tech giants are expected to contribute to the funding round. Microsoft, which has already invested $13 billion in OpenAI, is interested in contributing $1 billion. Chipmaker Nvidia is believed to be open to investing around $100 million.

The news comes days after several reports indicated that OpenAI is looking to make a switch from a non-profit to a for-profit business.

The New York Times recently also shared details about the company’s financial performance, which show that the company expects to reach $3.7 billion in annual sales but will also have $5 billion in expenses.

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