Apple, Microsoft drop board observer seats at OpenAI 

Apple and Microsoft have both dropped their observer board seat roles at AI firm OpenAI due to intense regulatory scrutiny.

Microsoft and Apple have dropped their board roles at OpenAI as regulatory pressure mounts against Big Tech firm’s presence in artificial intelligence, according to a report by The Information. Apple made a U-turn within a week after taking the board observer seat at the Sam Altman-led company as a part of duo’s AI pact. An OpenAI spokesperson has now said that they will no longer have board observers after Microsoft ditched its seat yesterday. 

Both Apple and Microsoft have integrated OpenAI’s services into their platforms and devices, respectively with Microsoft having invested $13 billion in the ChatGPT-maker. But regulators from both the US and the EU have expressed concern around Microsoft’s influence over OpenAI. 

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

Antitrust bodies were also looking into Microsoft’s deal with another AI startup, Inflection AI. 

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Microsoft had taken on the non-voting observer role on OpenAI’s board last year, after board members fired CEO Sam Altman in a shock decision last year. Altman was reinstated soon after with a new board being appointed. 

However, Microsoft isn’t the only tech company mired in antitrust trouble. The Amazon is under the scanner in UK over its $4 billion investment in AI firm Anthropic, and Nvidia is under investigation by the US over its dominance in manufacturing AI chips.