Apple has reportedly decided to step back from its plans to invest in OpenAI’s latest funding round, which is expected to bring in between $6.5 billion and $7 billion.

What Happened: According to The Wall Street Journal, Apple backed out of the deal at the last moment. This funding round, led by venture capital firm Thrive Capital, is supposed to close next week.

Meanwhile, Microsoft and Nvidia are still in talks to join the round, with Microsoft expected to chip in around $1 billion, adding to its previous $13 billion investment in OpenAI. Other players, like Tiger Global Management and UAE’s MGX, are also considering joining the round.

OpenAI, currently transitioning from a nonprofit to a for-profit company, is going through a big change. If this doesn’t happen within two years, investors in the current round can ask for their money back.

Why It Matters: The move to become a for-profit has caused some controversy. Elon Musk, who co-founded OpenAI in 2015 but left in 2018, has raised questions about whether this shift is even legal.

Earlier this year, Musk also criticized Apple’s partnership with OpenAI, worrying about data privacy. Apple had planned to integrate ChatGPT into its systems, which led Musk to threaten to cut off Apple products from his companies, including Tesla.