Apple reportedly withdrew from a new funding round for OpenAI at the last moment, but this decision will not affect its plans to integrate optional ChatGPT queries into Apple Intelligence.
OpenAI, the company behind ChatGPT, is currently closing a funding round expected to raise $6.5 billion, initially thought to include investment from Apple. Other tech giants, including Microsoft and Nvidia, are expected to participate, with Microsoft adding another $1 billion to the $13 billion it has already invested.
The report does not clarify why Apple chose not to invest in this funding round.
Although rare, Apple does occasionally invest in promising tech firms and startups. For instance, it established a $430 billion Advanced Manufacturing Fund to support companies that develop new technology, such as optical technology firm II-VI.
Another example is Finisar, a US-based company that provided technology used in FaceID and Portrait Mode, which Apple later acquired. Apple has also invested in Globalstar, the provider of the infrastructure that enables Emergency SOS via satellite.
Changes at OpenAI
Apple's decision to withdraw may be linked to OpenAI's recent transition from a nonprofit to a for-profit company. The transition process is complex, and if not completed within two years, investors from the current round may have the right to request their money back.
Apple's reported withdrawal from the funding round is not expected to impact its ongoing relationship with OpenAI. ChatGPT will still be an optional feature in Apple Intelligence, rolling out between late 2024 and early 2025.
As previously stated by Apple, users will have the option of using ChatGPT for queries beyond Siri's capabilities. The integration will allow users to access ChatGPT's knowledge without needing to create an account, while existing subscribers will also be able to use their paid features in those experiences.