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Under regulatory lens, Microsoft, Apple abandon board seats at OpenAI
- IBJ Bureau
- Jul 11, 2024
Microsoft and Apple have dropped plans to take board roles at OpenAI in a surprise decision that underscores growing regulatory scrutiny of Big Tech’s influence over artificial intelligence (AI).
Microsoft, which has invested $13 billion in the ChatGPT creator, will withdraw from its observer role on the board, the company has said in a letter to OpenAI. Apple was due to take up a similar role, but an OpenAI spokesperson has said that the startup won’t have board observers after Microsoft’s departure.
Regulators in the US and Europe have expressed concerns about Microsoft’s sway over OpenAI, applying pressure on one of the world’s most valuable companies to show that it is keeping the relationship at arm’s length. Microsoft has integrated OpenAI’s services into its Windows and Copilot AI platforms and, like other big US tech companies, is banking on the new technology to help drive growth.
Still, the board resignation is unlikely to resolve the US Federal Trade Commission’s concerns about Microsoft’s partnership with OpenAI, a source familiar with the agency’s thinking has said. Other regulators will likely feel similarly because the change does not alter Microsoft’s close ties to the startup, analysts add.
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