Apple: Apple pulls out from OpenAI's potential $6.5 billion funding round
As Sam Altman-run OpenAI gears up to finalize a potential $6.5 billion funding round as soon as next week, Apple has decided to withdraw from the latest funding cycle. According to a report by the Wall Street Journal, Apple has ended discussions to participate in the funding round.
Apple's potential involvement in the funding round came as a surprise to many, given the company's usual reluctance to invest in external firms. This development followed Apple's announcement of integrating ChatGPT into Siri.
Microsoft and Nvidia also in discussion
Aside from Apple, tech giants Microsoft and Nvidia have been in talks to join the OpenAI funding round. Microsoft is anticipated to contribute around $1 billion to the funding, having already invested $13 billion in the ChatGPT developer.
Venture capital firm Thrive Capital is spearheading the funding round with an investment of approximately $1 billion. Other potential investors include Tiger Global Management and UAE-backed firm MGX.
OpenAI transitions into for-profit entity
Reports suggest that OpenAI is in the midst of converting from a nonprofit organization into a for-profit entity to attract more investors and fuel its growth.
Recent developments at OpenAI include the departure of three top executives, including Chief Technical Officer Mira Murati. Matt Knight, the former head of security, has been appointed as OpenAI's new chief information security officer. Additionally, Kevin Weil, the Chief Product Officer, and Srinivas Narayanan, the VP of Engineering, will continue to lead the applied team at OpenAI. Josh Achiam will assume the role of Chief Scientist at the AI company.
Expansion into the search market
OpenAI has also ventured into the search market, a domain predominantly ruled by Google, by launching SearchGPT. This AI-powered search engine provides users with real-time access to information across the internet.
