Microsoft Corp. and Apple Inc. have unexpectedly decided not to take board roles at OpenAI, reflecting increasing regulatory concerns about Big Tech’s influence on artificial intelligence. Microsoft, which has invested $13 billion in the creator of ChatGPT, announced its withdrawal from the board in a letter to OpenAI seen by Bloomberg News. Apple was also set to join the board last week but has decided it will no longer take up the role
This decision comes amidst growing scrutiny from regulators in Europe and the U.S. about Microsoft’s significant influence over OpenAI. There is pressure on Microsoft to maintain a more independent relationship with OpenAI, given their substantial integration of OpenAI’s services into Microsoft’s Windows and Copilot AI platforms. Big Tech companies, including Microsoft, are heavily investing in AI technologies to drive future growth.
In the memo to OpenAI, Microsoft stated, “Over the past eight months we have witnessed significant progress from the newly formed board and are confident in the company’s direction. We no longer believe our limited role as an observer is necessary.”
Microsoft is currently under broader regulatory scrutiny for its perceived dominance in the AI sector. The U.S. has initiated investigations into Microsoft’s market dominance and whether it properly informed antitrust agencies about its deal with Inflection AI, a competitor of OpenAI. European regulators are also surveying Microsoft’s competitors regarding OpenAI’s exclusive use of its technology, and the U.K.’s competition authority is considering a deeper investigation into the partnership.
The Financial Times first reported on Microsoft’s exit. Leading U.S. tech companies like Microsoft, Nvidia, Alphabet Inc., and Amazon have invested heavily in AI businesses. While these investments are crucial for startups, regulators worry they might concentrate access to advanced AI technologies among companies that already dominate other sectors.
Apart from financial investments, tech giants are forming strategic partnerships. For example, Apple has partnered with OpenAI to integrate ChatGPT into the iPhone, and Microsoft has brought on board Mustafa Suleyman from Inflection AI along with most of his staff.
Microsoft’s role as a non-voting observer on OpenAI’s board began last year after the startup’s directors ousted CEO Sam Altman in a dramatic coup, only to reinstate him shortly after due to employee backlash. The board was then restructured.
OpenAI expressed gratitude to Microsoft for its confidence in the board and the company’s direction, and looks forward to continuing their partnership. OpenAI plans to hold regular stakeholder meetings with partners and investors such as Thrive Capital and Khosla Ventures to discuss progress on their mission and enhance collaboration on safety and security.
Founded in 2015 as a nonprofit research organization, OpenAI later evolved to include a for-profit startup, attracting investments and forming commercial partnerships.
