Microsoft, Apple withdraw from OpenAI board amid antitrust pressure

Key conclusions

Microsoft has reportedly resigned from its non-voting seat on OpenAI’s board just eight months after taking it.
Apple will also reportedly step down from a similar role as an observer on the startup’s board after announcing its partnership with OpenAI at its annual WWDC conference last month.
The decisions come amid an upsurge in antitrust activity against big technology companies in recent months, with regulators in the U.S. and around the world accusing tech giants of abusing their monopoly power.

Microsoft (MSFT) has resigned from its non-voting seat on the board of OpenAI, the company that makes ChatGPT, less than a year after joining it, according to sources, while Apple (AAPL) reportedly turned down the opportunity to take on a similar role as it integrates ChatGPT into new iPhones and operating systems.

Decisions reported by “Financial Times” AND Bloomberg Early Wednesday morning, regulators in the U.S. and abroad had stepped up efforts in recent months to curb the influence of big technology companies.

Microsoft resigns from board seat after seeing ‘significant progress’

Microsoft first added a board position after a tumultuous period for the generative startup in November 2023, when the board fired and then rehired Chief Executive Officer (CEO) Sam Altman within days.

In a letter sent to OpenAI late Tuesday, Microsoft said it has made “significant progress” over the past eight months, putting it in a position where confidence in OpenAI’s future no longer requires it to maintain a position on the advisory board, FT reported.

Apple, which announced a new partnership with OpenAI at its annual Worldwide Developers Conference (WWDC) last month, has reportedly passed on the chance to serve on a non-voting board seat as the OpenAI partnership moves forward. An OpenAI spokesperson said: FT that the company plans to hold regular meetings with investors and partners such as Apple and Microsoft to update them.

Growing Antitrust Pressure on Big Tech Companies

The moves by Microsoft and Apple come as their industries face more scrutiny from federal regulators than they have in recent years. The U.S. Department of Justice (DOJ) and the Federal Trade Commission (FTC) have filed lawsuits against Apple, Microsoft, Meta Platforms (META), and Google parent company Alphabet (GOOGL), accusing them of anticompetitive conduct.

Abroad, a landmark European Union (EU) law targeting big tech companies, the Digital Markets Act (DMA), came into force earlier this year, with regulators telling big tech companies that a range of their practices could breach the law, exposing them to hefty fines.

Regulators have also questioned Microsoft and Google’s investments and hiring in the AI sector, wondering whether the companies have gained an unfair advantage in a growing industry since Microsoft has invested billions of dollars in OpenAI.

Microsoft, Apple and OpenAI did not immediately respond to requests for comment.

Shares of Microsoft and Apple were up about 0.4% by 8:15 a.m. ET Wednesday, at $461.27 and $229.68, respectively.