A bombshell report from The Wall Street Journal has revealed that Apple has decided to pull out of a potential investment in OpenAI, the company behind the wildly popular ChatGPT and other AI tools.

This news comes just weeks after rumors surfaced suggesting Apple was considering a significant stake in OpenAI. Given Apple’s reputation for strategic investments and its growing interest in AI, such a move would have been a major coup for both companies.

However, according to the WSJ, Apple has now abandoned these plans, opting to sit out on the upcoming funding round that could see OpenAI raise up to $6.5 billion. While the exact reasons behind this decision remain unclear, it’s a significant blow to OpenAI, which has been on a meteoric rise in recent years.

Despite Apple’s withdrawal, OpenAI is still expected to secure the funding it needs from other sources. Microsoft, a longtime partner, is rumored to be investing around $1 billion, and NVIDIA is also likely to be a major contributor.

Meanwhile, Apple is not entirely abandoning its AI ambitions. The company plans to integrate ChatGPT into iOS in a limited capacity and is exploring other AI models, such as Google‘s Gemini. This suggests that Apple is still keen to leverage AI technology but is taking a more cautious approach to its investments.

Beyond the investment news, OpenAI has been facing its own share of challenges. Recent leadership changes and a shift in focus from a nonprofit to a for-profit entity have raised questions about the company’s future direction. Additionally, the departure of former Apple design lead Jony Ive, who is now working on an undisclosed AI project, adds another layer of intrigue to the AI landscape.