Microsoft and Apple Withdraw Observer Roles on OpenAI Board Amid Regulatory Scrutiny

Microsoft and Apple have relinquished their observer seats on OpenAI's board due to increased regulatory scrutiny. Microsoft had invested $13 billion in OpenAI's generative AI technology, ChatGPT. OpenAI announced a new strategy to engage partners. Analysts speculate various reasons for this decision, including strategic considerations and internal dynamics.

In a significant shift within the tech industry, both Microsoft and Apple have relinquished their observer seats on the board of OpenAI, as reported by UK-based 'The Financial Times'. This move coincides with growing regulatory scrutiny over the involvement of major tech firms in AI startups. Microsoft, which had heavily invested in OpenAI, including a notable USD 13 billion investment in its AI technology ChatGPT, has announced its immediate withdrawal from its observer role on OpenAI's board.

The decision was communicated through a letter to OpenAI, citing the company's satisfaction with the progress made by the newly formed board. Similarly, Apple, which was expected to take up an observer role as part of a deal to integrate ChatGPT into its devices, has decided against doing so.

While Apple declined to comment, sources suggest it will not be taking an observer position on OpenAI's board. In light of these changes, OpenAI has introduced a revised strategy for engaging with strategic partners and investors.

According to the Financial Times report, OpenAI plans to hold regular meetings with partners such as Microsoft and Apple, alongside investors like Thrive Capital and Khosla Ventures. This new approach aims to encourage a more inclusive and collaborative governance structure, stated an OpenAI spokesperson.

Recently, Phil Schiller, former Apple marketing chief, was added as an observer on OpenAI's board just days before these withdrawals. However, Schiller will no longer be observing OpenAI's operations, underscoring the fluid dynamics within the organization.

Analysts speculate that Microsoft's and Apple's decisions to withdraw from their observer roles could be driven by strategic considerations or internal dynamics within OpenAI. While some point to potential antitrust concerns or strategic disagreements, the exact reasons remain unclear.

(With inputs from agencies.)