Apple No Longer in Talks to Invest in OpenAI: WSJ

• Apple has “dropped out” of talks to invest in OpenAI’s next round of funding, The Wall Street Journal reported.
• The ongoing funding round, which could value OpenAI at $150 billion, could raise up to $6.5 billion.
• The round’s investors and amounts could still change as discussions are finalized.

Apple is no longer involved in discussions to invest in OpenAI during the company’s next funding round, The Wall Street Journal reported, citing a source familiar with the matter.

The ongoing funding round, which could close in the first week of October, could value the AI ​​startup as much 150 billion dollars. OpenAI is expected to raise up to $6.5 billion from interested investors, The Journal noted.

Other tech titans are still negotiating to invest in the AI ​​company. Citing sources familiar with the matter, The Journal reported that Microsoft plans to invest $1 billion, adding to the $13 billion it previously invested. Chipmaker Nvidia is also considering an investment of about $100 million, Bloomberg previously reported.

The round’s investors and amounts could change as discussions are finalized.

Apple representatives did not immediately respond to a request for comment from Business Insider. A spokesman for OpenAI declined to comment.

The funding round, which would be the largest valuation ever for a private tech company, according to Axios, comes as OpenAI is restructuring its business from a nonprofit to a for-profit entity.

While OpenAI has dominated the conversation about AI innovations in recent years and attracted massive investment from its backers, according to financial documents reviewed by The New York Timesthe company burns huge amounts of money in daily operations.

In August, OpenAI’s monthly revenue hit $300 million, and sales revenue is expected to hit $3.7 billion this year — but it’s still expected to lose $5 billion this year after expenses, according to The Times. However, the media reported that the company expects its sales to reach $100 billion in 2029.

This is a developing story. Check back for updates.