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Reports of the iPhone-maker in talks to potentially invest in OpenAI first came last month.
Apple has dropped out of participating in the upcoming OpenAI funding round – just as talks are slated to close next week.
Apple’s exit from the funding round was first reported by the Wall Street Journal last Friday (27 September), who also reported that according to sources, Microsoft will invest $1bn in OpenAI, in addition to the $13bn it has already invested in the AI start-up since 2019.
The upcoming funding round will be led by venture capital firm Thrive Capital with a $1bn into investment. Chip-maker Nvidia is also set to invest in the AI-giant.
The funding round is expected to raise as much as $6.5bn. The start-up is reportedly also looking to raise $5bn in debt from banks as a revolving credit facility.
OpenAI is set to reach a valuation of $150bn, significantly higher than its previous valuation of $86bn, making it one of the biggest start-ups in the world. However, talks are still in progress and more changes might occur.
Last week, OpenAI announced a complete overhaul in its structure, shifting from a not-for-profit to a for-profit company, and giving its chief executive Sam Altman equity. Although, Altman said that he will not receive a “giant equity stake” in the company.
On the same day, the company’s long-term chief technology officer, and interim CEO during Altman’s brief ousting last year, Mira Murati declared that she is leaving OpenAI.
Murati’s decision to leave seems to have come as a surprise, even to Altman, who wrote on X: “When Mira informed me this morning that she was leaving, I was saddened but of course support her decision.”
Along with Murati’s departure, research VP Barret Zoph and chief research officer Bob McGrew also announced they are leaving the company.
The process of changing the company’s structure is long and complicated but will need to be completed within two years, otherwise investors in the current round can request their investment back.
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