Microsoft, Apple shun OpenAI board as US scrutiny grows – BNN Bloomberg

(Bloomberg) — Microsoft Corp. and Apple Inc. have dropped their bids to serve as observers on OpenAI’s board, a surprise move that underscores growing scrutiny from antitrust regulators over big tech’s influence on artificial intelligence.

The Windows software maker, which invested $13 billion in the creator of ChatGPT, sent a letter to the startup announcing its withdrawal from the board, according to a person familiar with the matter, who asked not to be identified discussing the private move. Apple had been expected to take on a similar role, but an OpenAI spokesman said the startup would not have board observers after Microsoft’s departure.

Last month, European regulators said they would probe Microsoft’s rivals over OpenAI’s exclusive use of its technology, underscoring the growing pressure on one of the world’s most valuable companies, which hopes to use OpenAI’s services to power its Windows and Copilot AI platforms. The United States is launching a separate antitrust investigation into Microsoft’s alleged dominance in the fast-growing field, Bloomberg News reported.

“We have seen significant progress from our newly formed board over the past eight months, and we are confident in the direction the company is headed,” Microsoft wrote in its note to OpenAI, reviewed by Bloomberg News. “We no longer believe our limited observer role is necessary.”

Microsoft, which also runs the Azure cloud computing service, has doubts about its other investments in the space.

The FTC has also opened an investigation into whether Microsoft failed to properly notify antitrust agencies about its deal with Inflection AI, according to the people. In March, the Redmond, Washington-based software giant agreed to pay the startup $650 million to license its AI software and hired much of Inflection’s staff.

“We are grateful to Microsoft for expressing their confidence in our Board and the direction of the company, and we look forward to continuing our successful partnership,” OpenAI said in a statement to Bloomberg News, without directly commenting on the decisions by Apple or Microsoft. The Financial Times previously reported Microsoft’s departure.

(Updated with OpenAI statement from fourth paragraph)