Apple pulls out of OpenAI funding talks amid Microsoft and Nvidia interest
- Apple has pulled out of negotiations to invest in OpenAI's funding round, which is set to close soon.
- Microsoft and Nvidia are still in talks to contribute to the funding, with Microsoft expected to add $1 billion to its existing investment.
- The decision reflects Apple's shifting priorities and comes amid competitive smartphone camera rankings and product discontinuations.
In a surprising development, Apple has decided to withdraw from negotiations to invest in OpenAI's funding round, which is anticipated to raise between $6.5 billion and $7 billion. This decision was made just before the funding round was set to close, indicating a last-minute change in strategy. Microsoft and Nvidia are still in discussions to participate in the funding, with Microsoft expected to contribute around $1 billion to its existing investment in OpenAI. The funding round is being led by Thrive Capital and is part of OpenAI's transition from a nonprofit to a for-profit entity, a move that has raised concerns among some stakeholders, including Elon Musk. Musk, who co-founded OpenAI, has previously criticized this shift and expressed worries about data security and privacy, particularly in relation to Apple's collaboration with OpenAI. In addition to the funding news, the iPhone 16 Pro Max's camera has been ranked fourth globally, despite leading in video capabilities. This ranking reflects the competitive landscape of smartphone cameras, where expectations are high. The iPhone 16 series has undergone various tests, and the results have sparked discussions about its performance. Furthermore, Apple has discontinued several older iPhone models as part of its annual product streamlining. While these models are no longer produced, they may still be available through online and third-party retailers for a limited time. This move aligns with Apple's strategy to focus on newer products while managing its inventory effectively.