Apple drops out of race to join OpenAI funding round: WSJ

Apple (NASDAQ:AAPL) is no longer in talks to take part in an investment round announced by the Microsoft (NASDAQ:MSFT)-backed generative AI company, OpenAI, The Wall Street Journal reported late Friday.

The iPhone maker has recently withdrawn from the discussions to join the funding round, which is expected to close next week, according to a person familiar with the matter.

Microsoft (MSFT) and Nvidia (NVDA) have also discussed joining the capital raise, which could value the tech start-up at $150B, significantly higher than the $86B value it commanded in its last funding round. Microsoft (MSFT) is set to invest roughly $1B, bringing its total investments in OpenAI to $13B.

The discussions are ongoing, and the investors and their commitments to the round are subject to change.

OpenAI’s existing investor, Thrive Capital, is leading the round, as the venture capital is expected to add another $1.25B to the firm.