Microsoft and Apple step down from OpenAI board amid regulatory challenges

Money | July 10, 2024, 5:54 a.m.

Microsoft has recently stepped down from its seat as an observer on the board of OpenAI, just months after securing the non-voting position. Initially, Apple was expected to join the nonprofit board as well but has since decided against it. OpenAI has acknowledged Microsoft's decision to relinquish its seat, emphasizing a commitment to maintaining a successful partnership. OpenAI's new approach towards key stakeholders such as Microsoft and Apple involves hosting regular meetings to ensure stronger collaboration on safety and security measures. The changes in OpenAI's board come amidst rising antitrust concerns over Microsoft's partnership with the organization. Regulators in the UK and EU are scrutinizing the deal, along with other tech giants' investments in OpenAI. Microsoft's significant investment in OpenAI has positioned it as the exclusive cloud partner, giving them an advantage in the AI race and powering essential AI features across their products and services.