Apple no longer in talks to invest in OpenAI: report

Apple is no longer involved in talks to invest in OpenAI’s next funding round, which could value OpenAI at $150 billion, The Wall Street Journal reported.

Apple is no longer involved in talks 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 as soon as the first week of October, could value the AI startup at as much as $150 billion. 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 artificial intelligence company. Citing sources familiar with the matter, The Journal reported Microsoft is planning to invest $1 billion, adding to the $13 billion it has previously invested. Chip maker Nvidia is also considering an investment of around $100 million, Bloomberg previously reported.

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

Representatives for Apple did not immediately respond to a request for comment from B-17. A spokesperson for OpenAI declined to comment.

The funding round, which would be the highest valuation of all time for a private tech company, per Axios, comes as OpenAI is restructuring its business from a nonprofit to a for-profit entity.

While OpenAI has dominated the conversation around innovations in artificial intelligence in recent years and attracted massive investments from its backers, according to financial documents reviewed by The New York Times, the company burns through huge amounts of money in daily operations.

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