Robert Way
Microsoft (NASDAQ:MSFT) has reportedly ditched its board observer seat at OpenAI, while Apple (NASDAQ:AAPL) will not take up a similar position, as tech giants face increasing scrutiny over investments in artificial intelligence startups, the Financial Times reported on Wednesday.
Microsoft (MSFT), which has invested billions in the maker of the generative AI chatbot ChatGPT, said in a letter to OpenAI that its withdrawal from its board role would be “effective immediately”, the report said.
Apple (AAPL) had also been expected to take an observer role on OpenAI’s board as part of a deal to integrate ChatGPT into the iPhone maker’s devices, but would not do so, the report said, citing a person with direct knowledge of the matter.
According to an OpenAI spokesperson, the company will instead establish a new engagement approach with partners such as Microsoft (MSFT) and Apple (AAPL) and investors Thrive Capital and Khosla Ventures, the report added.
The pact between OpenAI and Microsoft has come under scrutiny from regulators around the world, including in the U.S., with the Federal Trade Commission inquiring into the deal. The U.K.’s Competition and Markets Authority has also looked into the deal.
Microsoft has cited OpenAI’s new partnerships and growing customer base since Altman’s return to the startup for giving up its observer seat.
“We have witnessed significant progress from the newly formed board and are confident in the company’s direction.” Therefore, Microsoft’s role on the board was no longer “necessary”, Microsoft’s deputy general counsel Keith Dolliver wrote in a letter to OpenAI late on Tuesday, as per multiple media reports.