Apple to leave OpenAI's funding round: report

Apple has stepped away from negotiations to invest in OpenAI's latest funding round, which is expected to raise about $6.5 billion, according to a report by the Wall Street Journal. The move comes as OpenAI gears up to close the round next week, with a valuation that could push the company above the $100 billion mark.

The Journal, citing a person familiar with the situation, noted that Apple recently exited discussions for the funding. The reasons behind Apple's decision to pull out have not been disclosed, and neither Apple nor OpenAI have provided any comments on the matter.

While Apple has withdrawn, other prominent tech firms like Microsoft and Nvidia remain in the picture. Microsoft, which has already invested a substantial $13 billion in OpenAI, is reportedly considering an additional $1 billion contribution to the new funding round. Nvidia, a leader in AI chip production, is also involved in talks.

This fundraising round comes as part of a larger AI arms race that began with OpenAI's launch of ChatGPT in late 2022. OpenAI's products, including ChatGPT and GPT-4, have not only revolutionised sectors like customer service, content creation, and data analytics but also triggered massive competition from other tech giants and startups alike. The company's rapid ascent has been fueled by strategic partnerships—especially with Microsoft—and the increasing adoption of AI-driven technologies across a range of industries.

With Apple stepping away from this funding round, the focus now shifts to the remaining players and their role in shaping OpenAI's future trajectory. Microsoft's continued financial backing indicates its deep commitment to advancing AI technology, while Nvidia's interest suggests a growing alignment between AI software and hardware development.