Apple and Microsoft Step Away from OpenAI Board

YEREVAN (CoinChapter.com) — Microsoft has stepped back from its observer role on the OpenAI board. This decision follows a $13 billion investment in the AI firm in April 2023. A Bloomberg report on July 10 revealed that Microsoft communicated its withdrawal through a letter, citing an anonymous source.

In the letter, Microsoft expressed confidence in the new board’s progress over the past eight months.

“We no longer believe our limited role as an observer is necessary,”

the company stated.

Apple Declines OpenAI Board Role; No Observers After Microsoft Exit

Apple has decided not to take up an observer role on OpenAI’s board. Initially, it was believed that Apple would join as part of a major agreement announced in June. However, with Microsoft’s departure, OpenAI will no longer have any board observers.

OpenAI acknowledged Microsoft’s decision, saying,

“We’re grateful to Microsoft for voicing confidence in the board and the direction of the company, and we look forward to continuing our successful partnership.”

EU Scrutinizes Big Tech AI Partnerships Amid Antitrust Concerns

These developments come amid growing regulatory scrutiny of Big Tech’s influence on AI. In June, European Union regulators hinted that OpenAI might face an antitrust investigation due to its partnership with Microsoft. This scrutiny is part of a broader initiative to monitor the AI activities of major firms like Microsoft, Google, Meta, and ByteDance’s TikTok.

EU competition chief Margrethe Vestager announced that local regulators would seek additional third-party views and survey these companies concerning their AI partnerships.

Microsoft-OpenAI Regulatory Update. Source: Margrethe Vestager Microsoft Faces EU Fines; Apple and OpenAI Continue AI Integration Talks

The European Commission has also indicated that Microsoft could face fines up to 1% of its annual EU revenue. This depends on Microsoft’s compliance with information requests related to its Bing search engine and associated generative AI services.

EU Demands AI Risk Data from Microsoft. Source: European Commission

Meanwhile, discussions between Apple and OpenAI about integrating generative AI technologies into iOS continue. Reports from April 2024 highlighted these active talks, suggesting a potential collaboration to enhance AI functionalities on Apple devices.

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