Apple's decision to leave negotiations for an OpenAI funding round expected to raise $6.5 billion has sent shockwaves through the tech industry. Find out how this move could impact your investments and the market.
(Reuters) - Apple (NASDAQ:) has left negotiations to participate in an OpenAI funding round expected to raise about $6.5 billion, the Wall Street Journal said on Friday.
The tech giant recently fell out of the talks for the round, set to close next week, the newspaper said, citing a person familiar with the matter.
Other firms, such as Microsoft (NASDAQ:) and Nvidia (NASDAQ:), have also been in talks to participate, the report said, adding that Microsoft was expected to invest about $1 billion after having already poured $13 billion into the company.
Last month, the Journal first reported that Apple was in the talks, as part of OpenAI's new fund-raising effort that could value the ChatGPT maker above $100 billion.
The high valuation is a result of the AI arms race OpenAI sparked with its launch of ChatGPT in late 2022, spurring companies across industries to invest billions in the technology to stay ahead of the competition and capture market share.
Analysis:
Apple's decision to pull out of the OpenAI funding round could have significant implications for the company and the tech industry as a whole. With the rise of AI technology and the increasing competition in the market, investors should pay close attention to how this development will impact the future of both Apple and OpenAI. It's clear that the tech industry is in the midst of a transformation, and those who stay informed and make strategic investment decisions will be best positioned to benefit from these changes.
