Microsoft and Apple decline seat on OpenAI board as regulatory scrutiny intensifies

Microsoft and Apple have both reportedly declined the opportunity to be observers on OpenAI’s board of directors, as regulatory scrutiny of generative AI companies continues to intensify.

The Financial Times have reported that Microsoft sent a letter to OpenAI informing them of their decision to withdraw from the board position with immediate effect.

CNBC have also reported that Deputy General Counsel for Microsoft, Keith Dolliver stated in the letter that its decision to decline the seat on the board was due to ‘significant progress’ from a new board they formed in Janaury.

It is the latest twist in a long-running sage between Microsoft and OpenAI.

Microsoft assumed the non-voting board seat in November 2023, following a turbulent period, which saw the board fire and then re-hire CEO Sam Altman within a few days.

Microsoft’s investment of $13bn in OpenAI to use its ChatGPT chatbot gave the US technology behemoth an early lead over its market rivals Amazon Web Services and Google.

Apple struck a deal to embed ChatGPT across its iPhone, iPad and Mac product portfolio as part of a suite of new AI capabilities, but the Financial Times have reported that Apple will not rake an observer seat on OpenAI’s board.

Regulatory pressure and scrutiny has heightened over recent months as the Gen AI phenomenon continues to sweep the globe.

Earlier this month, the European Commission announced it is requesting additional information from Microsoft to look at whether its arrangement with OpenAI violated antitrust rules.

Whilst, the US Department of Justice (DoJ) and Federal Trade Commission (FTC) reportedly plan to launch antitrust investigations into the perceived AI dominance of Microsoft, Nvidia and OpenAI.