Apple Withdraws from OpenAI Funding Round

(Reuters) – Apple (NASDAQ:AAPL) has left negotiations to participate in an OpenAI funding round expected to raise about $6.5 billion, according to the Wall Street Journal.

The tech giant recently fell out of the talks for the round, set to close next week, as reported by the newspaper, citing a person familiar with the matter.

Other firms like Microsoft (NASDAQ:MSFT) and Nvidia (NASDAQ:NVDA) have also been involved in discussions for participation. Microsoft is expected to invest about $1 billion, having already invested $13 billion into the company.

Last month, the Journal first reported that Apple was in negotiations as part of OpenAI’s new fundraising effort, which could value the ChatGPT maker above $100 billion.

This high valuation is attributed to the AI arms race that OpenAI ignited with the launch of ChatGPT in late 2022, prompting companies across industries to invest billions in technology to maintain a competitive edge and capture market share.