Microsoft has stepped back from its observer role on the OpenAI board, citing regulatory scrutiny of big tech's ties to AI startups. The move comes amid investigations by competition regulators in both the UK and US into the relationship between Microsoft and OpenAI, with concerns raised about potential control issues. The decision was communicated in a letter to OpenAI, with Microsoft highlighting the progress made by the startup's new board and the alignment of its goals with OpenAI's mission. Apple, set to appoint an executive to a similar role, will no longer have that option. This shift in approach by OpenAI includes regular stakeholder meetings to increase collaboration and transparency. Regulators are closely monitoring investments in AI startups, with the FTC examining tie-ups involving Google, Amazon, and Anthropic. Legal experts believe Microsoft's decision was influenced by the evolving regulatory landscape surrounding AI partnerships.