Apple has pulled out of discussions to participate in OpenAI’s funding round, which is expected to raise up to $6.5 billion, just before the deal’s closure, according to a report by The Wall Street Journal. This move represents a significant shift, as Apple, known for its selective investments, had been considering putting money into another prominent Silicon Valley firm, a rare occurrence. The company’s decision to step back from the talks was reported by an informed source.
Meanwhile, two other major tech players, Microsoft and Nvidia, remain in discussions about joining the round. Microsoft, which has already invested $13 billion in OpenAI, is reportedly looking to add another $1 billion. Although the talks are not yet finalized, the lineup of participants and their contributions could change before the round closes.
Venture-capital firm Thrive Capital is leading the round with an estimated $1 billion investment. Tiger Global Management and MGX, a company backed by the United Arab Emirates, are also reportedly in discussions to join the funding effort.
Simultaneously, OpenAI is navigating a complex shift in its corporate structure, transitioning from a nonprofit to a for-profit entity. This overhaul, which investors in this funding round have pushed for, comes with significant implications for the startup. Should OpenAI fail to complete the restructuring within two years, investors will have the right to reclaim their funds.
