Microsoft, Apple Exit OpenAI Board Amid Antitrust Scrutiny

Microsoft Corp. and Apple Inc. have stepped down from their positions as observers on OpenAI’s board following antitrust scrutiny on Big Tech’s influence over artificial intelligence.

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

Apple had been anticipated to assume a similar observer role, but an OpenAI spokesperson confirmed that no board observers would be appointed following Microsoft’s departure.

The decision comes amid increasing regulatory pressure on major technology companies.

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

This move highlights the intensifying scrutiny on Microsoft, one of the world’s most valuable companies, as it seeks to leverage OpenAI’s services to enhance its Windows and Copilot AI platforms.

The United States has launched a separate antitrust investigation into Microsoft’s dominance in the emerging AI sector.

“Over the past eight months, we have witnessed significant progress from the newly formed board and are confident in the company’s direction,” Microsoft wrote in its memo to OpenAI. “We no longer believe our limited role as an observer is necessary.”

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

The Federal Trade Commission (FTC) has opened a probe to determine whether Microsoft failed to properly notify antitrust agencies about its deal with Inflection AI.

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

“We’re grateful to Microsoft for voicing confidence in the 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 addressing the specific decisions of Apple and Microsoft.

The Financial Times had earlier reported on Microsoft’s exit from OpenAI’s board.

This move by Microsoft and Apple underscores the delicate balance tech giants must maintain as they navigate regulatory landscapes while advancing their strategic interests in AI.

The withdrawal from OpenAI’s board may help alleviate some regulatory concerns but also signals the complex and evolving nature of governance in the AI sector.