Apple in talks to invest in OpenAI

Apple rarely acts like a typical venture capitalist. Historically, the company either buys an entire startup to absorb its talent, or keeps partners at arm’s length with strict vendor contracts.

Now, it looks like OpenAI might get an exception.

According to a report from The Wall Street Journal, Apple is in talks to participate in OpenAI’s latest fundraising round. The round is expected to value the ChatGPT maker at over $100 billion, with venture firm Thrive Capital reportedly leading the pack with a $1 billion investment.

Microsoft is also expected to join the round. Redmond is already OpenAI’s biggest financial backer, having poured $13 billion into the startup since 2019 for a 49% share of its profits. The exact dollar amounts that Apple and Microsoft might put into this new round have not been disclosed.

From free exposure to cold hard cash

What makes this move fascinating is how quickly the dynamic shifted.

At WWDC in June, Apple revealed that ChatGPT would land inside iOS 18 later this year to handle broad knowledge queries alongside Siri. At the time, software chief Craig Federighi said Apple chose OpenAI because they wanted to start with the best, while hinting that alternatives like Google Gemini could follow later.

Shortly after, Bloomberg reported that no money changed hands in the deal. Apple wasn’t paying OpenAI for the API, and OpenAI wasn't paying Apple for distribution. Apple reportedly felt that giving OpenAI direct exposure to hundreds of millions of Apple devices was worth equal to or more than actual cash.

Now, Apple is talking about writing an actual check.

Why it matters

We think this shows Apple acknowledging that pure in-house AI development is not enough to keep pace.

For everyday iPhone users, having Apple hold a financial stake in OpenAI should guarantee a tighter, more reliable ChatGPT integration inside iOS 18 and beyond. You won't have to worry about the partnership imploding overnight over licensing disputes.

Strategically, though, it puts Apple in uncharted territory. Tim Cook’s empire takes pride in user privacy and absolute brand control. Tying itself financially to an AI lab prone to public controversies, regulatory scrutiny, and sudden leadership drama carries real reputational risk.

It is also wild to see Microsoft and Apple sitting on the same side of a cap table. Having the two largest tech titans backing the same AI engine proves how concentrated frontier AI has become, and it will make life significantly harder for any other model provider hoping to become a default partner on modern smartphones.