Apple exits funding talks with OpenAI, Microsoft invests $1 billion, OpenAI shifts to for-profit status.

From Nasdaq: 2024-09-30 09:46:01

Apple Inc. pulls out of funding talks with OpenAI, a move expected to raise $6.5 billion with investments from Microsoft and Nvidia. Microsoft plans to invest an additional $1 billion in OpenAI, resulting in a total valuation of around $150 billion. OpenAI shifting from non-profit to for-profit status to attract more investors.

OpenAI, led by Sam Altman, known for success of chatbot ChatGPT, was founded in 2015 as a non-profit. Recent restructuring will make it a for-profit entity, separating it from the non-profit segment. Apple introduced Apple Intelligence at developers conference, incorporating AI features from OpenAI partnership, enhancing Siri capabilities with ChatGPT integration.

Elon Musk, co-founder of OpenAI, threatens to ban Apple devices from his companies if Apple incorporates OpenAI tech into its operating system. These developments suggest a shifting landscape in the AI industry, with major players like Apple and OpenAI making strategic moves to stay ahead in artificial intelligence innovation.



Read more at Nasdaq: Apple Reportedly Exits From OpenAI’s $6.5 Bln Funding Round