Date:
September 30, 2024
The tech giant Apple has decided to withdraw from Open AI’s record-breaking fund initiative. Is this a sign of shifting priorities in the Silicon Valley?
In a surprising turn of events, Apple has decided to withdraw from the discussions to invest in Open AI’s highly anticipated fundraising round! With open AI aiming to raise a total of $6.5 billion, this round was imagined to catapult the AI company’s valuation to a whopping $150 billion.
While Apple has decided to take a step back, other tech giants are still in line, vying for a slice of the AI pie! The good old AI supporter, Microsoft, which has already invested $13 billion in Open AI, is preparing to offer an additional $1 billion. With Microsoft, Chipmaker Nividia is also rumored to be weighing in with a significant contribution.
Apple’s exit from the big talks of investing, which we believed would result in a massive strategic partnership, has sparked curiosity in the entire tech community. Apple is known for its controlled approach to AI development! There is a chance that the company is taking a more cautious route, choosing to prioritize internal AI developments rather than collaborating on a large scale with Open AI.
Interestingly, Apple’s great exit comes at a time when Open AI is making a big move to shift from its nonprofit structure to a profits-driven status. Many believe that this development may have influenced Apple’s decision of moving out.
Open AI’s monthly revenue recently hit $300 million, and it's on track to record sales of $3.7 billion this year. Despite these towering figures, the company faces immense financial pressure. It is projected that Open AI will lose around $5 billion alone this year pertaining to its high operational costs. Yet, with its higher ambitions to reach a jaw-dropping $100 billion in sales by the year 2029, Open AI is clearly building itself as one of the best AI tools and platforms for the long haul!
The race to control the future of AI technology is intensifying with the passing of time! While Apple’s curious withdrawal might sound like a major setback for the industry, the landscape still remains highly competitive! With other industry powerhouses still in the race running to make their mark, it will be interesting to see what unfolds next!
