Apple has reportedly exited negotiations to participate in OpenAI’s upcoming funding round, expected to raise around $6.5 billion. The round is anticipated to close next week, according to the Wall Street Journal. Other major tech companies, including Microsoft and Nvidia, are still engaged in talks to invest.
Microsoft is expected to contribute approximately $1 billion to the round, after previously investing $13 billion into OpenAI. The funding round is part of the tech industry’s growing interest in generative AI, which has sparked an arms race among companies to secure a competitive edge.
OpenAI‘s fundraising is projected to value the company at over $100 billion, largely driven by the success of ChatGPT. The AI model’s launch in late 2022 encouraged companies across multiple sectors to invest heavily in the technology to remain competitive.
OpenAI declined to comment on the news, while Apple did not respond to requests for clarification regarding its withdrawal from the negotiations.
SoftBank’s Vision Fund plans to invest $500 million in OpenAI’s latest funding round, according to a report by The Information. While SoftBank declined to comment, OpenAI did not respond immediately. The AI company is seeking to raise $6.5 billion through convertible notes, as reported by Reuters earlier this month.
Before SoftBank’s investment, OpenAI was valued at $150 billion, although this valuation is subject to change based on the company’s ability to restructure its corporate structure and lift the profit cap for investors. This marks SoftBank’s first investment in the firm led by Sam Altman.
OpenAI is reportedly considering a shift to a for-profit corporation that would function independently of its non-profit board. This transition aims to provide more flexibility and access to capital as the company seeks to enhance its business model and attract further investments.
OpenAI’s board is considering compensating CEO Sam Altman with equity, though no decision has been made, according to board chair Bret Taylor. The idea emerged as part of a broader conversation on restructuring the company’s core business into a for-profit benefit corporation. Altman holds no stake in OpenAI despite co-founding the organisation in 2015. His initial decision to forgo equity was rooted in the need for a majority of disinterested directors on the board.
The restructuring plan suggests that Altman could finally receive equity in the new for-profit entity. However, this transition comes amid sudden changes at the company, including the departure of several key executives. Speaking at a conference in Italy, Altman dismissed any connection between these exits and the ongoing discussions about the corporate restructuring.
As OpenAI navigates this pivotal transformation, it is also amid negotiations to raise $6.5 billion, with support expected from major players such as Microsoft, Nvidia, and Apple. The company’s potential valuation of $150 billion hinges on successfully executing its restructuring, which may include lifting a cap on investor returns.
Why does it matter?
Once restructured, the for-profit entity would no longer be under the control of the non-profit board that has overseen OpenAI since its inception. However, the non-profit organisation will continue to exist, holding a minority stake in the newly formed for-profit company. The shift signals a significant evolution for the AI giant as it seeks to attract further investment and scale its ambitions.
OpenAI’s official press account on X was hacked by cryptocurrency scammers, promoting a fraudulent blockchain token, ‘$OPENAI.’ The scammers posted a message claiming the fake token would grant users access to future OpenAI beta programs. The post linked to a phishing website designed to steal cryptocurrency wallet credentials from unsuspecting users. Despite the scam being evident, the post and the associated site remained active, with comments disabled to make the hack less noticeable.
This incident is part of a larger pattern, with OpenAI leadership accounts also targeted in similar phishing campaigns earlier this year. In June 2023, OpenAI CTO Mira Murati’s account was hacked, posting a nearly identical message about the non-existent “$OPENAI” token. Other key OpenAI staff, such as chief scientist Jakub Pachocki and researcher Jason Wei, were also hacked recently, further exposing vulnerabilities.
Cryptocurrency scams targeting high-profile X accounts have become increasingly common. In previous years, accounts belonging to Apple, Elon Musk, and Joe Biden were compromised to promote scams. These fraudulent campaigns often use fake offers or phishing schemes to steal funds from victims by tricking them into sending cryptocurrency to scam wallets.
Cryptocurrency scams have cost United States citizens $5.6 billion in 2023 alone, a significant increase from the previous year. With over 50,000 cases reported in the first half of 2024, losses have already reached $2.5 billion, according to the Federal Trade Commission, marking an alarming rise in the threat posed by such scams.
OpenAI is expanding its Advanced Voice Mode (AVM) to more ChatGPT users, beginning with those subscribed to the Plus and Teams plans, while Enterprise and education customers will gain access next week. The updated AVM includes a redesigned interface, now featuring a blue animated sphere, and introduces five new voices: Arbor, Maple, Sol, Spruce, and Vale. These additions bring the total voice options to nine, replacing ‘Sky,’ which was removed after legal issues arose over its similarity to actress Scarlett Johansson’s voice.
The AVM update also includes improvements like better accent recognition and smoother conversations. OpenAI has incorporated customisation options, including Custom Instructions, which allow users to personalise ChatGPT’s responses, and Memory, which enables ChatGPT to recall past conversations. However, previously showcased features such as video and screen-sharing remain unavailable, with no confirmed timeline for their release.
Despite the updates, AVM is not yet available in certain regions, including the EU, the UK, and several others. OpenAI is actively refining the feature based on early user feedback, working to resolve glitches and improve overall performance for a smoother experience.
Generative AI is significantly more energy-intensive than traditional search engines, according to researcher Sasha Luccioni, who has raised concerns about the environmental impact of the technology. Generating new information requires vast computing power and energy, particularly for models like ChatGPT, which rely on extensive data training.
The AI and cryptocurrency sectors consumed nearly 460 terawatt hours of electricity in 2022, around two percent of global production, according to the International Energy Agency. Luccioni, a leading expert on AI’s climate impact, has developed tools to quantify the carbon footprint of AI technologies, helping developers make informed decisions.
Efforts to mitigate the environmental consequences of AI are underway. Luccioni is working on a certification system to rate the energy efficiency of AI models, aiming to encourage more sustainable practices. Transparency from tech giants like Google and OpenAI is essential, as their greenhouse gas emissions have surged due to AI development.
The solution, Luccioni argues, lies in a combination of government legislation, increased transparency, and better public understanding of AI’s limitations and environmental costs. She advocates for ‘energy sobriety’ by using AI tools more judiciously and making environmentally conscious decisions.
A group of technology experts has launched a global call for ‘Humanity’s Last Exam‘ aiming to push AI systems to their limits by posing the most difficult questions possible. The Center for AI Safety (CAIS) and Scale AI are leading an initiative to establish when AI achieves expert-level capabilities. Current benchmark tests have become too easy for many AI models, so this effort aims to create a new exam that emphasises abstract reasoning, an area in which AI still faces challenges. The organisers hope this new exam will remain relevant as AI technology evolves.
The demand for more rigorous tests comes after OpenAI released its newest model, OpenAI o1, which has shown strong performance in traditional reasoning benchmarks. Dan Hendricks, executive director of CAIS, stated that AI systems like Anthropic’s Claude model had significantly improved standard tests, rendering these benchmarks less valuable. However, AI has struggled with more intricate tasks like planning and visual pattern recognition, highlighting the necessity for more advanced assessments.
The exam will include over 1,000 crowd-sourced questions that are challenging even for non-experts. Its goal is to prevent AI from simply memorising answers by keeping some questions private. Participants have until 1 November to submit questions, and there will be rewards for the best contributions. While the exam is designed to test AI thoroughly, questions about weapons will be excluded to avoid potential risks.
The company behind the popular AI chatbot ChatGPT, OpenAI, has announced that its newly established Safety and Security Committee will now operate independently to oversee the development and deployment of its AI models. This decision follows the committee’s recent recommendations, which were released publicly for the first time. Formed in May, the committee’s goal is to enhance and refine OpenAI’s safety practices amid growing concerns about AI’s ethical use and potential biases.
The committee will be led by Zico Kolter, a professor at Carnegie Mellon University and a member of OpenAI’s board. Under its guidance, OpenAI plans to implement an ‘Information Sharing and Analysis Center’ to facilitate cybersecurity information exchange within the AI industry. Additionally, the company is focusing on improving internal security measures and increasing transparency regarding the capabilities and risks associated with its AI technologies.
In a related development, OpenAI has also partnered with the US government to research and evaluate its AI models further. This move underscores the company’s commitment to addressing both the opportunities and challenges posed by AI as it continues to evolve.
Sam Altman, known for his leadership at OpenAI, has another ambitious project called Worldcoin, which seeks to address the potential fallout from AGI. He envisions AGI reshaping the global economy, and Worldcoin aims to build a framework to identify humans online and eventually offer universal basic income through its cryptocurrency.
Worldcoin’s plan involves the use of biometric data, particularly scanning people’s irises, to create digital IDs. These unique identifiers ensure that only humans can participate in online activities, preventing bots from infiltrating online spaces. While this technology may seem dystopian, the project insists on the safety and encryption of personal data, immediately deleting images after processing.
Despite concerns, Worldcoin has garnered substantial interest, including backing from major investors. CEO Alex Blania acknowledges the need to communicate the project’s vision clearly, especially as it faces regulatory challenges in various countries. Collaboration with governments is essential to ensure smooth deployment of the technology.
With AGI on the horizon, projects like Worldcoin are positioning themselves to shape the future. Altman believes that once AGI becomes widespread, the digital identity and financial framework offered by Worldcoin could play a vital role in adapting to this new reality.
A new task force has been launched by the White House to address the growing demands of AI infrastructure. Led by the National Economic Council and the National Security Council, the group aims to balance AI development with national security, economic, and environmental goals. Senior US officials and executives from major technology companies, including OpenAI and Google, took part in the meeting on Thursday.
The focus of the discussion was on the power requirements for advanced AI systems. Leaders explored how to meet clean energy targets and infrastructure needs, particularly in the face of increasing demand from data centres. AI has raised both hopes for efficiency gains and concerns over potential misuse, with its energy consumption being a significant challenge.
The Biden administration is pushing tech firms to invest in eco-friendly power solutions. The AI industry’s energy needs could complicate the government’s ambition to decarbonise the power grid by 2035. Representatives from major agencies, including Energy Secretary Jennifer Granholm, were part of the conversation on tackling these issues.
AI infrastructure plays a crucial role in the future of the US economy, according to OpenAI. The company emphasised the importance of expanding data centres domestically, not only to support industrial growth but also to ensure that AI’s benefits reach all corners of society.
