TTB White LOGO TB
  • News
  • PC & Hardware
  • Mobiles
  • Gaming
  • Electronics
  • Gadget
  • Reviews
  • How To
Trending
PS6 Expected Release Date, Features, and Upcoming Games
iOS 18 and Apple Passwords: How to Import All Your Saved Passwords
How to Block Someone on TikTok – Complete Guide 2025
Character AI: Review – Is it Safe for Teens and Kids?
How Apple Health Turns Your Phone into a Personal Doctor
Sunday, Jun 1, 2025
The Tech BasicThe Tech Basic
Font ResizerAa
Search
  • News
  • PC & Hardware
  • Mobiles
  • Gaming
  • Electronics
  • Gadget
  • Reviews
  • How To
Follow US
Apple will not invest in Open AI (1)
The Tech Basic > News > Apple Will Not Invest In OpenAI: Why Did It End Negotiations?
News

Apple Will Not Invest In OpenAI: Why Did It End Negotiations?

Evelyn Blake
Last updated: 1 October 2024 01:46
Evelyn Blake
Share
SHARE

Apple will not invest in OpenAI, according to a new report from The Wall Street Journal. The report states that the Cupertino company has abandoned negotiations to participate in the funding round that the startup is using to raise new money for its future.

Please follow us on Facebook and Twitter.

The reasons for Apple’s decision not to invest in OpenAI are currently unclear. However, it is important to note that this decision will not affect the integration of ChatGPT with Siri, which is part of the improvements planned for Apple Intelligence in future iOS 18 updates.

There is speculation that recent changes to OpenAI’s management structure, along with plans to restructure the startup into a for-profit organization, may have influenced Apple’s decision not to proceed with the investment.

It’s worth noting that at one point, Apple was set to have a seat on the new OpenAI board of directors. However, shortly after this was announced, both Apple and Microsoft stepped down from their positions as observers. This decision is believed to be related to increasing regulatory scrutiny from the US and the European Union regarding the influence of large tech companies on AI startups.

Apple would be the notable absentee from OpenAI’s new financing round.

Apple will not invest in Open AI (2)

OpenAI’s new investment round is expected to close this week, with several major names participating. Sam Altman’s company plans to raise $6.5 billion, which would give the AI startup an estimated valuation of $150 billion. Investors reportedly include Thrive Capital, Microsoft, NVIDIA, the Emirati fund MGX, and SoftBank, among others.

There has been ongoing discussion about OpenAI’s high expenses in developing ChatGPT and other products, which reportedly exceed the company’s earnings from services and subscriptions. Experts warn that this could lead the startup to bankruptcy within 12 months if it does not secure a significant investment soon.

With or without Apple as a “benefactor,” OpenAI is aiming to build a strong financial cushion to support its restructuring process. The firm is expected to become a charitable corporation, allowing it to operate independently of its current board of directors, while still maintaining its nonprofit arm, which would hold a minority stake.

Amid these changes, the San Francisco-based firm has just lost Mira Murati, one of its key figures. The former CTO unexpectedly announced her departure, following the earlier exit of Ilya Sutskever, co-founder and former chief scientist of OpenAI. Additionally, several researchers and security experts have left, accusing Altman and his team of prioritizing economic profit over the development of safe AI.

TAGGED:Apple
Share This Article
Facebook Reddit Copy Link Print
Share
Evelyn Blake
By Evelyn Blake
Follow:
Evelyn Blake is an investor in technology and journalist who has been in the nascent space since 2014. Her love and passion for technological innovations made her delve deeper into the world of technology evolution. As a journalist, Evelyn has been covering latest trends and emerging gadgetries. She is a philanthropist and human rights activist.

Let's Connect

FacebookLike
XFollow
PinterestPin
InstagramFollow
Google NewsFollow
FlipboardFollow

Popular Posts

PS6 Expected Release Date

PS6 Expected Release Date, Features, and Upcoming Games

S.Dyema Zandria
iOS 18 and Apple Passwords

iOS 18 and Apple Passwords: How to Import All Your Saved Passwords

S.Dyema Zandria
Block Someone on TikTok

How to Block Someone on TikTok – Complete Guide 2025

S.Dyema Zandria
Character AI

Character AI: Review – Is it Safe for Teens and Kids?

S.Dyema Zandria

You Might Also Like

Apple Health
Blog

How Apple Health Turns Your Phone into a Personal Doctor

Apple
Blog

Project Bongo: Apple Revives Failed Buttons for All Devices

iPhone 16
BlogMobiles

Is the iPhone 16 Worth It? What You Should Know Before You Buy

Apple
News

Apple Prepares a New Games App for WWDC

Social Networks

Facebook-f Twitter Instagram Pinterest Rss

Company

  • About Us
  • Our Team
  • Contact Us

Policies

  • Disclaimer
  • Privacy Policy
  • Cookies Policy
Latest
No More Reading Long Emails? Google’s New Gemini Feature
Grammarly’s $1 Billion Boost to Build the Future of AI Productivity
How Instagram Edits Empowers Creators with Advanced AI Video Editing Tools
Google Veo 3: The Next Frontier in AI-Generated Video Content
ChatGPT 4.5 Whats New, Features, Access and Comparison with ChatGPT 4.0

© 2024 The Tech Basic INC. 700 – 2 Park Avenue New York, NY.

TTB White LOGO TB
Follow US
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?