Apple has reportedly pulled out of negotiations to participate in an OpenAI funding round, which is expected to raise around $6.5 billion. According to a report by the Wall Street Journal, the iPhone maker fell out of the talks for the round, which was set to finalise next week. Other tech giants like Microsoft and Nvidia have also reportedly been in talks to participate in the funding round, reported the Wall Street Journal.
Microsoft is expected to invest around $1 billion, and notably, it has already invested around $13 billion into the ChatGPT maker till now.
OpenAI's Valuation
In a report from last month, the Journal revealed that Apple has been in discussions as part of OpenAI’s latest fundraising initiative, which could see the ChatGPT creator's valuation soar beyond $100 billion. These talks highlight the growing interest from major players in the tech industry in backing innovative AI companies.
The substantial valuation is largely due to the AI race ignited by OpenAI with the introduction of ChatGPT in late 2022. This groundbreaking launch has driven companies across various sectors to pour significant resources into AI development, aiming to maintain a competitive edge and carve out a larger share of the market. As artificial intelligence continues to evolve, investments like these have become crucial for businesses looking to harness the technology's potential and lead the future of innovation.
Earlier, the valuation was expected to be around $100 billion, but now the valuation has reportedly shot up to $150 billion.
OpenAI Top Layer Quits
Several top executives at Microsoft-backed OpenAI have parted ways with the company, marking the latest in a series of high-profile exits this year. Among those stepping down are Chief Technology Officer Mira Murati, VP of Research Barret Zoph, and Chief Research Officer Bob McGrew, who all announced their departures on X.
These resignations come at a pivotal moment for OpenAI, as the company is in the midst of negotiating a new $6.5 billion funding round, potentially pushing its valuation to $150 billion. However, these discussions are reportedly contingent on significant changes to OpenAI’s corporate structure, adding another layer of complexity to the company’s ongoing evolution.