Apple withdraws from OpenAI investment talks amid new funding round

Apple has decided not to invest in OpenAI, according to a report from The Wall Street Journal.

This development comes as OpenAI prepares to close a significant $6.5 billion funding round, with potential investments from Microsoft and Nvidia. Initially reported to be in discussions last month, Apple has since exited negotiations for the funding round, which is set to conclude next week.

Microsoft, already a major investor in OpenAI with a 49% share of its profits, is expected to increase its stake by an additional $1 billion in this round.

Despite Apple's withdrawal from the investment talks, the companies are still collaborating on integrating ChatGPT into iOS 18, allowing the AI to assist with queries alongside Siri. Notably, Apple is not providing financial compensation for this integration, as it views the exposure for OpenAI as potentially more valuable than cash.