Microsoft, Apple pushed off OpenAI board due to regulatory measures

Microsoft and Apple have back tracked from their planned board roles at OpenAI.

This is against the backdrop of growing concerns from both US and European authorities about the dominance of tech giants in the AI sector.

Microsoft, which has invested $13 billion in OpenAI, has resigned from its non-voting observer position on the board.

The company cited its confidence in OpenAI’s progress and direction as reasons for no longer needing to oversee its operations.

Apple, which was set to assume a similar role, also decided to withdraw following Microsoft’s exit.

Regulators from both sides of the Atlantic have voiced concerns about the potential monopolistic control that companies like Microsoft have over AI advancements.

Microsoft’s integration of OpenAI’s services into its Windows and Copilot AI platforms exemplifies the growing entanglement of big tech in AI development.

In an internal memo, Microsoft expressed its satisfaction with the developments at OpenAI, reinforcing its decision to step down from its observer role. However, this move doesn’t come without broader regulatory pressure.

The US government is investigating whether Microsoft adequately informed antitrust officials about its deal with Inflection AI, while European regulators are scrutinizing Microsoft’s exclusive use of OpenAI’s technology.

The scrutiny on Microsoft is part of a larger regulatory effort to address the concentration of AI innovation within a handful of large tech firms.

Other companies, including Amazon and Nvidia, are also under the regulatory microscope for their dominant positions in the AI market.

Amazon’s $4 billion partnership with AI startup Anthropic and Nvidia’s control over the AI chip industry have particularly drawn attention.

Major tech companies like Microsoft, Nvidia, Alphabet, and Amazon have made significant investments in AI, raising concerns about their concentrated control over these advanced technologies.

Even non-financial partnerships, such as Apple’s collaboration with OpenAI to bring ChatGPT to the iPhone and Microsoft’s recruitment of Inflection AI’s Mustafa Suleyman, are under scrutiny.

OpenAI expressed gratitude towards Microsoft for its support and affirmed its commitment to continued collaboration with various stakeholders.

The organization plans to hold regular meetings with partners such as Thrive Capital and Khosla Ventures to focus on safety and security in AI development.