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Apple walks away from funding OpenAI

by on01 October 2024


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The fruity cargo cult Apple has walked away from a funding round for OpenAI that is expected to raise approximately $6.5 billion.

The move is surprising because Apple’s much-hyped Apple Intelligence depends on OpenAI. The Tame Apple Press claimed Jobs’ Mob was considering an investment in OpenAI as part of a fundraising effort that could value the AI company at over $100 billion.

Apple’s moves have left other major tech companies to remain involved. Microsoft, which has already invested $13 billion in OpenAI, is expected to contribute about $1 billion to this latest round. Nvidia is also reportedly in talks to participate.

It also leaves Apple stuck. While Apple Intelligence is more or less ready for its mobile phones, it is entirely dependent on OpenAI inventing it. Apple previously announced plans to integrate ChatGPT into Siri on iOS 18, iPadOS 18, and macOS Sequoia later this year. This integration will allow Siri to display ChatGPT responses directly with user permission.

The Tame Apple Press claims that reports of turmoil within OpenAI's ranks as it pursues a for-profit structure may have factored into Apple's decision not to pursue the investment. However, it would be a first if Jobs’ Mob cared about which executive was warming a seat in a company rather than the technology it was peddling.

Apple's planned ChatGPT integration for its platforms is still expected to proceed before the end of the year. The company has said that iPhone, iPad, and Mac users can use ChatGPT for free without creating an account, while ChatGPT Plus subscribers can access paid features on Apple devices.

However, the future of Apple Intelligence is suddenly in doubt. It would require Apple to remake AI products on its own.

Last modified on 01 October 2024
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