Apple pulls back from OpenAI investment

Fri, 09/27/2024

by Ellie LeTu

Source: WSJ 1, WSJ 2

• Funding round talks

  • Apple unexpectedly decided to not join the round.

  • OpenAI expects to raise $6.5B from tech giants (Microsoft, Nvidia)

  • The company is now valued at more than $100B.

• Large funds receiving from investors

  • Microsoft (MSFT) invested more than $10B since 01/2023, holding 49% share.

  • Thrive Capital, a NYC VC by Josh Kushner, will leading the round with $1B to invest in.

  • Many firms join the talks for investing like Tiger Global Management, United Arab Emirates.

• Concerns: for-profit restructuring and AI competition

  • CEO Sam Altman came back with plans to raise large funds, and make OpenAI for-profit.

  • The last founding member- CTO Mira Murati- announced her departure, following 20 other AI researchers.

  • Competitor Anthropic, founded by former OpenAI executives, received $6B from Google and Amazon.