Apple has decided not to invest in OpenAI at this time.
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Apple has reportedly pulled out of a new round of OpenAI funding at the last minute, but that won't affect its plans to integrate additional ChatGPT queries into Apple Intelligence.
OpenAI, the company behind ChatGPT, has closed a funding round that is expected to raise $6.5 billion, which was previously expected to be partially funded by Apple. Fellow tech giants Microsoft and Nvidia are among those expected to participate in the new funding, with Microsoft expected to add another $1 billion to the $13 billion it has already invested.
The report is unclear why Apple is not investing in the funding round.
While rare, it is not uncommon for Apple to invest in other tech companies and promising startups. The company created a $430 billion Advanced Manufacturing Fund to invest in companies that help it supply it with new technologies, such as optical technology firm II-VI.
Another example of this is Finisar, a US company that provides some of the technology behind FaceID and Portrait Mode, which Apple later acquired in its entirety. Apple has also invested in Globalstar, which provides the infrastructure that makes Emergency SOS via satellite possible.
Changes at OpenAI
Apple's exit may be related to OpenAI's recent move to shed its non-profit status and become a for-profit company. The transition will be complex, and if OpenAI does not complete the transition within two years, investors in the current round may ask for their investment money back.
Apple's announcement of its withdrawal from the funding round is not expected to have any impact on the company's ongoing relationship with OpenAI. ChatGPT will continue to be an optional feature in Apple Intelligence as it rolls out in late 2024 and early 2025.
As Apple noted, users will have the option to receive answers to queries from ChatGPT if the nature of the query falls outside the scope of Siri's knowledge base. The integration will allow users to access ChatGPT's knowledge without having to create an account, although existing subscribers can integrate their paid features into these capabilities.
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