Apple has exited its negotiations with popular ChatGPT AI chatbot maker OpenAI, according to a report from The Wall Street Journal. The reason for Apple dropping out of talks is currently unclear.
Apple had been discussing the possibility of it participating in a funding round for OpenAI that is expected to raise approximately $6.5 billion. The funding round is set to close this week.
A month ago, a WSJ report said that Apple was considering an investment in OpenAI as part of a fundraising effort that could value the AI company at over $100 billion.
While Apple has stepped away from the negotiation table, other major tech companies remain involved. Microsoft has already invested $13 billion into OpenAI since 2019, owning a 49% share of its profits. The Redmond firm is also expected to be investing more as part of the round. Nvidia is also said to be in talks to participate in the offering.
The news of Apple’s withdrawal will be a bit of a surprise for many industry observers, asa an investment into OpenAI could help improve Apple’s standing in the artificial intelligence marketplace.
Apple’s AI initiative, Apple Intelligence, allows users to connect Siri to handle queries. An investment by Apple into OpenAI would only deepen the relationship between the two firms.
However, recent reports of internal turmoil within OpenAI as it pursues a for-profit structure, may have weighed heavily into Apple’s decision not to go forward with the investment.
Although Apple is not investing in OpenAI, it is expected to proceed with its planned ChatGPT integration for its platforms.Apple has said that iPhone, iPad, and Mac users will be able to use ChatGPT for free without creating an account. Meanwhile, ChatGPT Plus subscribers will still be able to access paid features on Apple devices.