Apple, Microsoft drop board observer seats at OpenAI 

Microsoft had taken on the non-voting observer role on OpenAI’s board last year, after the board fired CEO Sam Altman in a shock decision

Published - July 11, 2024 12:07 pm IST

FILE PHOTO: Microsoft and Apple have dropped their board roles at OpenAI as regulatory pressure mounts.

FILE PHOTO: Microsoft and Apple have dropped their board roles at OpenAI as regulatory pressure mounts. | Photo Credit: Reuters

Microsoft and Apple have dropped their board roles at OpenAI as regulatory pressure mounts against Big Tech firm’s presence in artificial intelligence, according to a report by The Information. Apple made a U-turn within a week after taking the board observer seat at the Sam Altman-led company as a part of duo’s AI pact. An OpenAI spokesperson has now said that they will no longer have board observers after Microsoft ditched its seat yesterday. 

Both Apple and Microsoft have integrated OpenAI’s services into their platforms and devices, respectively with Microsoft having invested $13 billion in the ChatGPT-maker. But regulators from both the US and the EU have expressed concern around Microsoft’s influence over OpenAI. 

A memo written by 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.”

Antitrust bodies were also looking into Microsoft’s deal with another AI startup, Inflection AI. 

(For top technology news of the day, subscribe to our tech newsletter Today’s Cache)

Microsoft had taken on the non-voting observer role on OpenAI’s board last year, after board members fired CEO Sam Altman in a shock decision last year. Altman was reinstated soon after with a new board being appointed. 

However, Microsoft isn’t the only tech company mired in antitrust trouble. The Amazon is under the scanner in UK over its $4 billion investment in AI firm Anthropic, and Nvidia is under investigation by the US over its dominance in manufacturing AI chips.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.