Apple No Longer In Talks To Invest In ChatGPT Maker
Apple has reportedly exited negotiations to invest in OpenAI, the company behind the highly popular AI chatbot ChatGPT, according to a report from The Wall Street Journal.
Apple had been engaged in discussions to participate in a significant funding round for OpenAI, which is aimed at raising approximately $6.5 billion. This funding round is set to close this week and is expected to elevate OpenAI's valuation to over $100 billion, reflecting the intense competition in the artificial intelligence sector that OpenAI has helped ignite with the launch of ChatGPT in late 2022.
Despite Apple's withdrawal, other major tech companies remain committed to the investment. Microsoft, which has already invested $13 billion in OpenAI and owns a 49% share of its profits, is expected to contribute an additional $1 billion to this latest funding round. Nvidia is also reportedly in talks to participate in the offering.
The reasons behind Apple's decision to drop out of the negotiations are currently unclear, but recent reports of internal turmoil within OpenAI as it transitions to a for-profit structure may have played a significant role. OpenAI, founded in late 2015 as a non-profit aimed at developing safe and beneficial artificial general intelligence (AGI), has been shifting towards a for-profit model, which could have influenced Apple's decision.
This development comes as a surprise given Apple's recent moves in the AI space. The company had announced plans to integrate ChatGPT into its virtual assistant Siri on iOS 18, iPadOS 18, and macOS Sequoia later this year. This integration will allow Siri to display ChatGPT responses directly with user permission. iPhone, iPad, and Mac users will be able to use ChatGPT for free without creating an account, while ChatGPT Plus subscribers will have access to paid features on Apple devices.
Apple's commitment to AI development remains unchanged despite its decision not to invest in OpenAI. The company introduced Apple Intelligence at its developers conference in June, a personal intelligence system that integrates powerful, private generative AI models into its devices. This initiative includes enhancing Siri's capabilities with AI technologies, which will continue to roll out as planned.
The funding round, even without Apple's participation, is expected to significantly boost OpenAI's valuation, potentially taking it to around $150 billion. This valuation surge highlights the ongoing fierce competition among tech giants, including Google, Microsoft, and Nvidia, in the AI innovation space.
In the broader context, Apple's withdrawal from the investment talks does not indicate a retreat from the AI space. Instead, it suggests that Apple may be pursuing other AI-related projects or strategies that align with its overall AI development goals.