Apple Withdraws From $6.5 Billion OpenAI Investment

Apple has reportedly backed out of a potential $6.5 billion investment in OpenAI, the company behind ChatGPT and other generative AI models. According to The Wall Street Journal, Apple was in talks to participate in the investment round but abruptly withdrew from discussions at the last minute.

Had the investment gone through, it would have been a rare but not unprecedented move for Apple to invest in a company of OpenAI’s size. OpenAI is still expected to raise the funds it needs, with significant contributions anticipated from other major players, including Microsoft, which has already invested heavily in the company. Microsoft is expected to contribute approximately $1 billion in this round, further strengthening its partnership with OpenAI.

Nvidia is also rumored to be a major investor in the upcoming funding round, which should be finalized soon.

Apple’s decision to pull out comes as the tech giant prepares to offer limited ChatGPT integration in an upcoming iOS update. Apple also plans to support additional AI models, including Google’s Gemini, offering users more options, similar to choosing a default search engine or browser.

OpenAI continues to dominate the AI industry, but recent internal turmoil, leadership departures, and its shift from a nonprofit to a for-profit model under CEO Sam Altman have sparked controversy. Additionally, Apple’s former design lead, Jony Ive, is confirmed to be working on a new AI-related project. However, the reasons for Apple’s withdrawal from the investment remain unclear.