Microsoft, Apple Skip OpenAI Board Amid Scrutiny
![Microsoft and Apple have decided not to take observer roles on OpenAI’s board to avoid scrutiny from antitrust regulators.](https://insidetelecom.com/wp-content/uploads/2024/07/OpenAIs-board-1-1024x576.jpg)
Microsoft and Apple have decided not to take observer roles on OpenAI’s board to avoid scrutiny from antitrust regulators over tech giants’ AI influence.
According to a source familiar with the decision, Microsoft announced its decision by sending a letter to OpenAI confirming its withdrawal from the board.
Apple was also expected to have a similar role within the board but will no longer do so. Following Microsoft’s surprising decision, and according to an OpenAI spokesperson, the company decided to dismantle the board of observers.
360 Degree Investigation
European regulators announced plans to investigate the Windows maker’s competitors about OpenAI’s exclusive use of its technology. This shows that there is significant pressure on Microsoft, which is one of the biggest tech companies globally, and as it uses the AI company’s products to enhance its Windows and Copilot AI platforms.
The US is considering investigating to examine Microsoft dominance in AI, according to Bloomberg News.
In a memo to OpenAI, reviewed by Bloomberg, Microsoft said, “Over the past eight months we have witnessed significant progress from the newly formed board and are confident in the company’s direction,” adding that its role as observer is not required anymore.
The tech giant, which also has the Azure computing services, is under severe scrutiny regarding other investments that it has made in the field of AI. The Federal Trade Commission (FTC) has investigated whether Microsoft failed to inform the antitrust agencies that it has made a deal with Inflection to license its AI software and hire staff members.
No Longer an Observer, Always a Partner
In a statement to Bloomberg, OpenAI expressed gratitude for its partner’s trust in the new board, emphasizing that the successful partnership is ongoing. However, it did not give any comment related to Apple and Microsoft’s decisions. In fact, Microsoft is considered a key partner to OpenAI, given that it has invested $13 billion in the company to the development of AI technologies that were also integrated into the tech giant’s products. However, the number of investigations and blames that are being infringed might have led Microsoft to take such a decision.
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