OpenAI Board Shakeup: Microsoft Out, Apple Backs Away Amid AI Partnership Scrutiny
Freeman writes:
Microsoft has withdrawn from its non-voting observer role on OpenAI's board, while Apple has opted not to take a similar position, reports Axios and Financial Times. The ChatGPT maker plans to update its business partners and investors through regular meetings instead of board representation. The development comes as regulators in the EU and US increase their scrutiny of Big Tech's investments in AI startups due to concerns about stifling competition.
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Microsoft accepted a non-voting position on OpenAI's board in November following the ouster and reinstatement of OpenAI CEO Sam Altman.Last week, Bloomberg reported that Apple's Phil Schiller, who leads the App Store and Apple Events, might join OpenAI's board in an observer role as part of an AI deal. However, the Financial Times now reports that Apple will not take up such a position, citing a person with direct knowledge of the matter. Apple did not immediately respond to our request for comment.
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Microsoft remains a critical financial and technology resource for OpenAI, having invested over $10 billion in the company since early 2023.
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While no official source has yet officially linked Microsoft's board withdrawal (and Apple's change of direction on a potential OpenAI board position) to regulatory scrutiny, it's unlikely to be a coincidence. Regulators in both the US and Europe are worried that Big Tech's heavy influence in fast-growing AI startups may unreasonably edge out competition and establish de facto monopolies over key technologies that would stifle smaller competitors.
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Even though Microsoft's financial ties run deep into OpenAI, as Financial Times notes, the ChatGPT maker states: "While our partnership with Microsoft includes a multibillion dollar investment, OpenAI remains an entirely independent company governed by the OpenAI Nonprofit."
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