Apple No Longer in Talks to Invest in ChatGPT Maker OpenAI
Apple has reportedly exited negotiations to invest in OpenAI, the company behind the popular ChatGPT AI chatbot, according to The Wall Street Journal.
Apple had been in discussions to participate in a funding round for OpenAI that is expected to raise approximately $6.5 billion. However, Apple recently dropped out of the talks for reasons that remain unclear. The funding round is set to close this week.
The development comes just a month after WSJ reported that Apple was considering an investment in OpenAI as part of a fundraising effort that could value the AI company at over $100 billion. The high valuation reflects the intense competition in the artificial intelligence sector that OpenAI helped ignite with ChatGPT's launch in late 2022.
While Apple has stepped away, other major tech companies remain involved. Microsoft, which has already invested $13 billion in OpenAI, is expected to contribute about $1 billion to this latest round. Nvidia is also reportedly in talks to participate.
The news of Apple's withdrawal may surprise some, given the company's recent moves in the AI space. Apple previously announced plans to integrate ChatGPT into 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. However, recent reports of turmoil within OpenAI's ranks as it pursues a for-profit structure, may have factored into Apple's decision not to pursue the investment.
That said, Apple's planned ChatGPT integration for its platforms is still expected to proceed before the end of the year. The company has said that iPhone, iPad, and Mac users will be able to use ChatGPT for free without creating an account, while ChatGPT Plus subscribers will be able to access paid features on Apple devices.
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