Microsoft and Apple ditch OpenAI board seats amid regulatory scrutiny

Less than eight months after gaining a non-voting seat, Microsoft gave up its seat as an observer on the OpenAI board. Apple reportedly plans to join OpenAI’s nonprofit group, but for now Financial Times reports Apple will no longer join the group.

OpenAI confirmed that Microsoft has vacated its seat in a statement to edge, The following Reports from Axios And this Financial Times Keith Tolliver, Microsoft’s deputy general counsel, wrote a letter to OpenAI late Tuesday.

“We are grateful for Microsoft’s confidence in the company and its leadership, and we look forward to continuing our successful partnership,” said OpenAI spokesman Steve Sharp. “Under the leadership of CFO Sarah Friar, we are establishing a new approach to information and engagement with key strategic partners like Microsoft and Apple — and investors like Thrive Capital and Khosla Ventures.”

OpenAI’s new approach to Microsoft and Apple will include holding “regular stakeholder meetings to share progress on our work and ensure strong collaboration across security and safety.”

The changes to OpenAI’s board come as antitrust concerns over Microsoft’s deal with OpenAI have grown in recent months. UK regulators began seeking feedback on Microsoft’s partnership with OpenAI in December after the ouster of CEO Sam Altman and the turmoil that led to his return. There are also EU regulators Looking at partnershipAlong with other big tech AI deals. The FTC is investigating Microsoft, Amazon and Google’s investments in OpenAI and Anthropic.

Microsoft has invested more than $10 billion in OpenAI, making it the exclusive cloud partner for Microsoft OpenAI. Microsoft’s cloud services power all OpenAI workloads in products, API services, and research. The deal has given Microsoft an edge in the AI ​​race, and OpenAI’s models are helping to improve AI features in Microsoft’s Bing search engine, Copilot, and across its products and services.