Microsoft, Apple Leave OpenAI Board Amid Antitrust Scrutiny – Investors King

Microsoft Corp. and Apple Inc. have resigned from observer positions on OpenAI’s board as antitrust regulators begin scrutiny of big tech companies’ influence on artificial intelligence.

Microsoft, which invested $13 billion in OpenAI, the creator of ChatGPT, informed the startup of the withdrawal via a letter, according to an anonymous source familiar with the matter.

Apple was expected to take on a similar observer role, but an OpenAI spokesperson confirmed that no board observers would be appointed following Microsoft’s departure.

The decision comes amid growing regulatory pressure on big tech companies.

Last month, European regulators announced plans to probe Microsoft’s competitors over OpenAI’s exclusive use of its technology.

The decision comes amid increased scrutiny by Microsoft, one of the world’s most valuable companies, as it seeks to leverage OpenAI’s services to improve its Windows and Copilot AI platforms.

The United States has launched a separate antitrust investigation into Microsoft’s dominant position in the emerging artificial intelligence sector.

“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. “We no longer believe our limited observer role is necessary.”

Microsoft, which operates the Azure cloud computing service, is also facing questions about its other AI investments.

The Federal Trade Commission (FTC) has opened an investigation to determine whether Microsoft failed to adequately notify antitrust authorities about its agreement with Inflection AI.

In March, Microsoft agreed to pay $650 million to license Inflection AI software and hired most of the startup’s employees.

“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 fruitful partnership,” OpenAI said in a statement to Bloomberg News, without referring to the specific decisions by Apple and Microsoft.

The Financial Times previously reported on Microsoft’s withdrawal from OpenAI’s supervisory board.

This move by Microsoft and Apple underscores the delicate balance that tech giants must strike as they navigate the regulatory landscape while pursuing their strategic interests in AI.

OpenAI’s board withdrawal may help ease some regulatory concerns, but it is also a signal of the complexity and evolving nature of governance in the AI ​​sector.