Apple reportedly decides it doesn’t want to invest in OpenAI

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Apple reportedly pulled out of talks to join OpenAI’s funding round, reports the Wall Street Journal, which is poised to be the largest in history, with a whopping $6.5 billion on the table.

So, what gives? Was Tim Cook’s crew never that into OpenAI in the first place, or did something spook them? There are a whole bunch of theories flying around, so let’s dig in.

First off, it’s not like Apple’s been shy about investing in AI. They’ve got big plans to drop $25 billion on the tech over the next few years. And they’ve already snatched up a few startups to beef up their in-house AI chops.

But OpenAI, with its ChatGPT buzz and moonshot valuation, is a whole different ball game.

OpenAI’s got some heavy hitters lined up for this round, including Thrive Capital, which is ponying up over $1 billion. Maybe Apple didn’t want to play second fiddle. Or maybe they’re just being cagey with their AI cash for now.

AppleInsider has a pretty good take on why Apple decided to pause the deal. Apple’s decision could be related to OpenAI’s recent move to abandon its nonprofit status and become a for-profit company. The change in structure may have made the investment less appealing to Apple.

To add insult to injury, the iPhone maker is in talks to license Google’s Gemini artificial intelligence models to power new features for the iPhone, which is likely a blow to the ego of OpenAI’s leadership and a sign that Apple is exploring other options for advancing its AI capabilities.

One thing’s for sure — OpenAI isn’t hurting for dough. They’ve already raised $11.3 billion across seven rounds, and this latest haul will put them at a staggering $150 billion valuation. That’s a lot of pressure to deliver on the AI hype.

So, what does it all mean? Is Apple missing out on the AI train, or are they playing it smart? And can OpenAI live up to its blockbuster billing? The AI race is heating up, folks. Buckle up.

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