Home Business Microsoft, Apple Leave OpenAI Board Amid Regulatory Scrutiny.

Microsoft, Apple Leave OpenAI Board Amid Regulatory Scrutiny.

Microsoft, Apple Leave OpenAI Board Amid Regulatory Scrutiny.

Microsoft has resigned from its position as an observer on OpenAI’s board, just months after securing the non-voting seat. This move comes amidst reports that Apple, which was planning to join the nonprofit board, will no longer be doing so. OpenAI has acknowledged Microsoft’s decision, with statements indicating they are looking at new ways to engage with strategic partners such as Microsoft and Apple for stronger collaboration on safety and security.

The departure of Microsoft from OpenAI’s board follows increased scrutiny from regulators over antitrust concerns surrounding Microsoft’s deal with OpenAI. UK and EU regulators have been evaluating the partnership, particularly in light of the turbulence within OpenAI that led to CEO Sam Altman’s ousting and subsequent return. The FTC is also conducting investigations into investments made by Microsoft, Amazon, and Google into OpenAI and Anthropic, reflecting the broader oversight of Big Tech’s AI deals.

Microsoft’s significant investment of over $10 billion into OpenAI has solidified the partnership, making Microsoft the exclusive cloud partner for OpenAI. This collaboration has given Microsoft a competitive advantage in the AI space, with OpenAI’s cutting-edge models enhancing various Microsoft products and services like Bing search engine, Copilot, and other AI features. Despite stepping down from the board, Microsoft’s deep-rooted partnership with OpenAI continues to shape the landscape of AI innovation.

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