Refer Report

Apple has suspended investment discussions in OpenAI, which developed ChatGPPT (GPT).

Citing sources, the Wall Street Journal reported on the 27th (local time) that Apple had withdrawn from negotiations to participate in Open AI’s funding round (attracting investment before a startup’s IPO), which is scheduled to close next week. It is not clear why Apple withdrew its intention to invest.

Previously, Open AI raised about $1 billion from U.S. venture capital Thrive Capital and discussed participation in the funding round with Apple, Microsoft (MS), Nvidia, etc.

The Wall Street Journal reported that Microsoft and Nvidia are continuing investment negotiations. The Wall Street Journal added that Microsoft is expected to invest an additional $1 billion in addition to the $13 billion it has already invested in Open AI.

OpenAI, which was launched as a non-profit corporation in 2015, has recently been seeking to transform its structure into a for-profit corporation. If this plan is successful, investors who participated in this funding round will be able to receive profit distribution without any upper limit. Conversely, if the conversion to a for-profit corporation fails within two years, investors will be able to receive their investment back from the company.

Meanwhile, the New York Times reported that Open AI expects sales of $3.7 billion this year, but is expected to incur a loss of about $5 billion due to higher various costs. The media also said that Open AI will increase the monthly subscription fee for ChatGP, which is currently $20, to $44 over the next five years.

Reporter Seon Dam-eun sun@hani.co.kr

Source: Korean