Microsoft has relinquished its board observer seat at OpenAI, a move echoed by Apple’s decision not to join the board. This comes at a time of increasing scrutiny from antitrust officials in Europe and the US.
Details from the Financial Times
Microsoft, which has invested $13 billion in OpenAI, announced that its withdrawal from the board would be "effective immediately." Apple, initially expected to take an observer role on OpenAI’s board as part of a deal to integrate ChatGPT into its devices, will also refrain from doing so, according to insider sources.
An OpenAI spokesperson highlighted a shift towards hosting regular meetings with strategic partners, including Microsoft, Apple, and investors like Thrive Capital and Khosla Ventures. This new approach, led by recently appointed CFO Sarah Friar, aims to keep key partners informed and engaged without formal board roles.
Antitrust Investigations
The backdrop to these changes includes rising antitrust concerns. The European Commission is exploring a potential investigation into the Microsoft-OpenAI partnership, while the US Federal Trade Commission is examining investments by tech giants in generative AI startups.
Microsoft’s deputy general counsel, Keith Dolliver, noted in a letter to OpenAI that the decision to leave the board follows significant progress made by OpenAI’s newly formed board. Dolliver expressed confidence in the company’s direction, making Microsoft's board role no longer "necessary."
An OpenAI spokesperson expressed gratitude for Microsoft's confidence and emphasized the continuation of their partnership.
These strategic shifts are not isolated events. UK regulators began scrutinizing the Microsoft-OpenAI partnership in December, shortly after the turbulent period that saw CEO Sam Altman’s temporary ousting and return. EU regulators are also investigating this partnership along with other AI-related deals by major tech companies.
Microsoft’s substantial investment in OpenAI has established it as the exclusive cloud partner for OpenAI, powering all its workloads across products, API services, and research. This collaboration has given Microsoft a competitive edge in the AI sector, enhancing its Bing search engine, Copilot, and other AI features across its product lineup.