OpenAI and Apple were previously reported to have struck a deal in integrating ChatGPT to Siri and iOS 18, with the iPhone maker also said to be investing in the billion-dollar startup. Unfortunately, Apple will no longer have a stake in the company because it has pulled out from injecting funds into OpenAI, at least according to the latest report. For those who do not know, a funding round of about $6.5 billion could be closed in the next week, with possible investments coming from Microsoft and NVIDIA.
Microsoft is currently the biggest investor in OpenAI; based on the new report, Apple pulled out at the 11th hour
A paywalled report from The Wall Street Journal says that Apple’s involvement in OpenAI would have been a rare move for the Cupertino giant, but one person familiar with the matter said that the talks could not reach a point of fruition. It was never disclosed why Apple opted to remove itself from the investing pool, and neither was it revealed how much funding it intended to give to Open AI. However, with the California-based titan out of the race, Microsoft and NVIDIA can seize higher equity in the generative AI firm.
Microsoft is already said to be the biggest investor in OpenAI and owns a 49 percent share of the profits. It is possible that the software giant is preparing a $1 billion investment, with Thrive Capital reportedly investing more than $1 billion. Assuming that the $6.5 billion round is OpenAI’s target, the remaining $4.5 billion will have to come from elsewhere. Despite recently hitting $3.7 billion in revenue this year, the entity behind ChatGPT continues to bleed billions, which was exacerbated by internal clashes amongst peers, technical delays, burnouts, and other setbacks.
It just came to light that Mira Murati, OpenAI’s Chief Technology Officer, had resigned from her position, hinting at a volatile workplace environment. The company forecasts that its revenue will touch $11.6 billion in 2025, but with losses already reaching $5 billion this year, the funding round has become more of a ‘make or break’ situation for OpenAI.
News Source: The Wall Street Journal
