Microsoft, Apple Resign from OpenAI Board Over Antitrust Concerns

After Bloomberg announced that Apple will be given a seat on OpenAI’s board due to its recent partnership with Apple Intelligence, Financial Times writes that not only will Cupertino not join the board, but Microsoft is also giving up its observer seat in the face of regulatory scrutiny.

This will allow both companies to have stakeholder meetings instead of board seats to keep up with OpenAI’s latest plans. EdgeOpenAI confirmed the change:

“We are grateful to Microsoft for their confidence in our board and direction, and we look forward to continuing our successful partnership,” says OpenAI spokesman Steve Sharpe. “Under the leadership of CFO Sarah Friar, we are establishing a new approach to informing and engaging key strategic partners—including Microsoft and Apple—and investors—including Thrive Capital and Khosla Ventures.”

To accommodate these changes, OpenAI will hold “regular stakeholder meetings to share progress toward our mission and ensure closer security collaboration.”

With Microsoft and Apple under regulatory scrutiny in the UK, EU and US, both companies have been more cautious about avoiding possible sanctions. UK regulators began taking feedback on Microsoft’s partnership with OpenAI late last year. EU regulators are investigating the partnership and other Big Tech deals, while the FTC is investigating investments in OpenAI and Anthropic by Microsoft, Amazon and Google.

While Apple is not under scrutiny over its OpenAI agreement, the European Commission is looking into why the Cupertino company is not rolling out Apple Intelligence, among other iOS 18 features, in Europe. The company argues that the DMA would make Apple’s platforms less secure.

With this in mind, Apple should resign from a possible seat on the OpenAI board, as Microsoft is already facing criticism for its investment position in the startup.

BGR We will continue to monitor the latest information on this matter and will let you know as soon as we learn anything new.