Microsoft has resigned its observer seat on ChatGPT maker OpenAI's board, and Apple is expected to pull out too, despite incorporating the AI technology in Apple Intelligence.
Microsoft and Apple's Initial Involvement
Apple had been expected to put Phil Schiller onto OpenAI's board as a non-voting observer, following the two companies' partnership in Apple Intelligence. Similarly, Microsoft appointed an observer following 2023's chaotic ousting and then re-hiring of OpenAI CEO Sam Altman.
Changes in Board Participation
According to multiple sources, including the Financial Times, Microsoft has now withdrawn its observer. A source with direct knowledge of the matter indicates that Apple will no longer take an observer board position.
Regulatory Scrutiny
The move by both Apple and Microsoft is believed to be related to scrutiny by global regulators. Authorities in both the US and the European Union are reportedly examining OpenAI's partnership with Microsoft.
Official Statements
Apple has not confirmed that it will no longer take a seat on the board, nor commented on the report. Microsoft announced its decision through a letter to OpenAI, notifying the company that its withdrawal from the board would be "effective immediately."
OpenAI's Response
A spokesperson for OpenAI said that instead of having observers on the board, the firm would host regular meetings with its partners. These partners include Apple, Microsoft, and investment companies Thrive Capital and Khosla Ventures.
Regulatory Concerns
Regarding regulation, OpenAI's Sam Altman has previously expressed concerns that AI might be over-regulated, particularly by the EU. In 2023, he mentioned that OpenAI might quit the EU entirely due to regulatory pressures.