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Apple

Apple No Longer In Talks To Invest In OpenAI (macrumors.com) 26

Posted by BeauHD from the surprising-developments dept.
Apple has withdrawn from discussions to invest in OpenAI's $6.5 billion funding round, though reasons for the decision remain unclear. The company still plans to proceed with integrating ChatGPT into Siri. MacRumors reports: The development comes just a month after WSJ reported that Apple was considering an investment in OpenAI as part of a fundraising effort that could value the AI company at over $100 billion. The high valuation reflects the intense competition in the artificial intelligence sector that OpenAI helped ignite with ChatGPT's launch in late 2022. While Apple has stepped away, other major tech companies 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. OpenAI's transition into a for-profit structure may have factored into Apple's decision. Last week, Reuters reported on OpenAI's plan to restructure its core business into a for-profit benefit corporation that will no longer be controlled by its non-profit board. "Chief executive Sam Altman will also receive equity for the first time in the for-profit company, which could be worth $150 billion after the restructuring as it also tries to remove the cap on returns for investors," reported Reuters.
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Apple No Longer In Talks To Invest In OpenAI

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  • At least Apple knows a scam when it see one.

    • Re: (Score:2)

      by gweihir ( 88907 )

      Well, maybe. On the other hand, the scam could not be any more obvious at this time.

      • At least Apple knows a scam when it see one.

        Well, maybe. On the other hand, the scam could not be any more obvious at this time.

        When did the obviousness of a scam ever stop greedy people from falling for it?

        • Re: (Score:2)

          by gweihir ( 88907 )

          Basically never. Good point. Greed makes people blind to reality.

        • Hold on, you're not understanding the Silicon valley process. It *does not* matter if it is or is not a scam. What does matter is the probability of selling your investment for more than you paid for it. In the recent past during the zero interest rate era, your profit as an early VC investor was mostly baked in even if the idea was absurdly dumb. You could easily flip it in the next round of funding. So what this is really saying is that Apple doesn't think it can be flipped profitably. It may have reached

    • Re:Good Move (Score:4, Informative)

      by Kisai ( 213879 ) on Monday September 30, 2024 @05:57PM (#64829753)

      True.

      "Open"AI is not "Open" in any manner of speaking.

      Like here's the thing. If the AI training data was "open" we could ignore some of the other stuff. But it isn't, which means they are basically saying "trust us" when it comes to the models, and we can't refine the models without knowing what's in it.

      I think what's going to happen is we're going to see a bit of an implosion in "generative AI" use. Lots of these AI systems are going nowhere. We're seeing CoPilot crash and burn, We're seeing no practical use from "celebrity voice" websites, who likely won't be in business very much longer.

    • Scam seems a bit of an understatement for non profit selling its assets below market value to enrich the board.

  • Oh sure, Podcasting Bros might be "out" with their inane bullshit, ego the size and destructiveness of a death star, and total lack of actual knowledge. But they'll be back. You just wait for the next big silicon valley "thing", they'll be be back with vengeance!

  • I think the reasons are obvious (Score:4, Interesting)

    by Whateverthisis ( 7004192 ) on Monday September 30, 2024 @05:08PM (#64829633)
    Apple invests in companies only when it serves Apple's interests. So I'm speculating here, but i would imagine their backing out entails:

    1) Sam Altman isn't trustworthy except to do what's right for Sam Altman alone

    2) OpenAI used to be a non-profit, and now it's kind of not? So it's less mission driven than it used to be

    3) Apple doesn't really care about valuations; they don't need to make money on this. Their investment would have likely come with several requests regarding Apple control of any AI on Apple devices, something I doubt Altman would agree to.

  • Can't wait for the eventual movie (Score:5, Interesting)

    by ByTor-2112 ( 313205 ) on Monday September 30, 2024 @05:08PM (#64829635)

    It's going to be fantastic when the AI bubble pops and Sam Altman has set $100 billion on fire. He's the next Adam Neumann.

    What a story of absolute greed in action. Microsoft is running as fast as they can to give OpenAI money, most of which ends up right back in their pockets through Azure cloud services. This pushes others to join the rush, resulting in a fantastic multiplier for the "return" on investment as Azure revenue, and they will eventually either dump the investment for a profit or write off the losses. Either way, Microsoft is the only one winning in this model.

    • There will be a movie, but itâ(TM)s not the one youâ(TM)re describing.

      AGI is real, and the prize is in sight.

      Itâ(TM)s not just Altman.

      $100B is a very conservative estimate of the bets being made right now.

      Cheers

      • Re: (Score:3)

        by gweihir ( 88907 )

        AGI is real, and the prize is in sight.

        Hahaha, no. Not even remotely true. Unless you go with the fake definition of AGI, were it is not General Intelligence.

    • The existing tech is useful enough for a lot of things, people just need to get in the habit of using it. Same thing happened for text messaging and search engines. It took a while for everyone to start using it.

      • Re: (Score:3)

        by hey! ( 33014 )

        Actually search engines got popular very quickly. I remember, I was there.

        AI is also being adopted extremely quickly, to the point where a shocking amount of content on the Internet is now AI generated. What's holding it back isn't lack of awareness, what's holding it back is the limitations of the technology.

        • ... a shocking amount of content on the Internet is now AI generated.

          And a shocking amount of it is completely useless crap.

          What's holding it back isn't lack of awareness, what's holding it back is the limitations of the technology.

          Yeah, its inability to create content that isn't crap unless there is substantial human involvement.

      • Yes but not at the current cost. And there is little hope for the cost going down.

    • Re: (Score:2)

      by gweihir ( 88907 )

      What a story of absolute greed in action.

      Indeed. Another nice example why a significant part of the human race is crap.

    • "He's the next Adam Neumann."

      Adam Neumann at least pocketed some of the money.

  • Altman's greed (Score:4, Insightful)

    by thesjaakspoiler ( 4782965 ) on Monday September 30, 2024 @06:11PM (#64829793)

    Sam Altman's 'for-all-mankind' scam is coming to an end.
    As with many of these ventures, the greedy top makes sure they arrange fat multi-million rewards for themselves while letting all the other employees work for bananas.

    • Will his other companies save him? https://en.wikipedia.org/wiki/... [wikipedia.org] I venture not, but man, this guy has his fingers in just about everything.

    • Sam Altman's 'for-all-mankind' scam is coming to an end.
      As with many of these ventures, the greedy top makes sure they arrange fat multi-million rewards for themselves while letting all the other employees work for bananas.

      I'm not sure it's a scam as much the fact that few ideals withstand a $150B payday, particularly when you can engage in motivated reasoning such as "ours are the only hands we can trust and we need to be for-profit to raise funds to stay in front".

    • The employees will make out quite well most likely. If he tries to defraud the non profit, everyone involved without morals will need their pound of flesh or they are going to point out the emperor has no clothes. The voices of OpenAI board employees will carry a lot more weight than angry old men on the internet.

  • https://www.benzinga.com/marke... [benzinga.com]

    Was this an elaborate ruse to build out a huge infrastructure to support his blockchain?

    Which crypto will win, Trump's or Altman's?

  • OpenAI will forever own the democratization of artificial intelligence with its discovery of ChatGPT convention. Sam Altman, with “ golden-touch” boy syndrome, wants the next higher abstraction - smartAGI.

    AAPL sees ChatGPT as incremental toward its innovation in AI crucially on handheld iPhone integration. Apple are third-gen innovators, neither inventor, integrator but total innovators. OpenAI just killed off a valuable revenue stream ostracizing a willing investment partner and customer of its

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