Apple has withdrawn from discussions regarding investment in OpenAI’s upcoming funding round, as reported by The Wall Street Journal. The potential valuation of OpenAI in this round is $150 billion, and it could raise up to $6.5 billion. The investors and amounts involved in this round may still change as negotiations progress.
The ongoing funding round, projected to conclude by the first week of October, could result in a valuation of up to $150 billion for the AI startup. OpenAI aims to secure investments totaling $6.5 billion from interested parties. Notably, Microsoft is considering investing $1 billion in addition to its previous $13 billion investment, while Nvidia is contemplating an investment of around $100 million.
Despite Apple’s withdrawal, other tech giants are still in talks to invest in OpenAI. Microsoft and Nvidia are among the key players. The final composition of investors and the total investment amount are subject to change as discussions evolve.
Apple has yet to comment on the situation when contacted by Business Insider. OpenAI also declined to provide a comment on the matter. This funding round, poised to be a record valuation for a private tech company according to Axios, comes as OpenAI undergoes a restructuring process from a nonprofit to a for-profit entity.
While OpenAI has been at the forefront of AI innovations and attracted significant investments, financial documents indicate that the company incurs substantial operational costs. Despite generating substantial revenues and projecting significant growth, OpenAI expects to operate at a loss this year but anticipates a significant increase in sales by 2029.
The situation continues to develop, and updates are expected. [Read the original article on Business Insider to learn more.](https://www.businessinsider.com/apple-falls-out-talks-invest-openai-wsj-report-2024-9)