Apple breaks away from OpenAI funding just a week before finalisation
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As OpenAI, led by Sam Altman, approaches the potential finalisation of a $6.5 billion funding round, Apple has reportedly pulled out of the negotiations, which could conclude as early as next week.
According to a report by the Wall Street Journal on Saturday, the iPhone manufacturer has "backed out of discussions" regarding participation in the funding round.
Apple's potential involvement was unexpected, given its infrequent practice of investing in external companies. This news follows Apple's recent announcement about integrating ChatGPT into Siri.
The report indicates that Apple is no longer in talks to join the OpenAI funding round, which was anticipated to raise up to $6.5 billion. This last-minute decision ends what could have been a rare investment by the iPhone maker in a major Silicon Valley firm. Meanwhile, Microsoft and graphics chip leader Nvidia have also been considering participation in the funding round, with Microsoft expected to contribute around $1 billion. The tech giant has already invested $13 billion in the company behind ChatGPT.
The report also notes that venture capital firm Thrive Capital is leading the funding round with an investment of approximately $1 billion. Other potential investors include Tiger Global Management and the UAE-backed firm MGX.
Additionally, three top executives, including Chief Technical Officer Mira Murati, have left the ChatGPT developer. Altman has announced that Matt Knight, the former head of security, will now take on the role of Chief Information Security Officer at OpenAI.
Chief Product Officer Kevin Weil and VP of Engineering Srinivas Narayanan will continue to lead OpenAI’s applied team, while Josh Achiam has been appointed as the Chief Scientist of the AI company.
The company has also ventured into the search market, traditionally dominated by Google, by launching SearchGPT, an AI-powered search engine that offers real-time access to information across the web.