Apple has officially withdrawn from a significant funding round for OpenAI, which was expected to raise between $6.5 billion and $7 billion. This decision comes just before the round’s closure, marking a missed opportunity for Apple to invest in one of Silicon Valley’s most prominent AI firms.
The funding round is being led by Thrive Capital and is still expected to include substantial contributions from Microsoft and Nvidia, with Microsoft planning to invest approximately $1 billion, adding to its existing $13 billion stake in OpenAI.
The funding initiative aims to value OpenAI at over $150 billion, a notable increase from its previous valuation of around $80 billion earlier this year. This shift reflects the growing investor interest in AI technologies, despite a recent cooling in the market.
OpenAI is currently transitioning from a nonprofit to a for-profit entity, a complex process that has raised eyebrows among industry watchers and investors alike. If this transition is not completed within two years, current investors will have the right to request refunds on their investments.
Nvidia remains a key player in this funding round due to its critical role in providing the specialized chips necessary for AI advancements. The participation of Tiger Global Management and UAE-backed MGX is also anticipated, further solidifying the financial backing for OpenAI’s ambitious plans.
Despite Apple’s withdrawal, the company continues to pursue AI integration within its products. Recently, Apple announced plans to incorporate generative AI features into its devices, including enhancements to its Siri virtual assistant and other applications.
This strategic pivot indicates Apple’s commitment to remaining competitive in the rapidly evolving AI landscape, even as it steps back from direct investment in OpenAI.
