Microsoft Corp. and Apple Inc. decided to withdraw from their planned board roles at OpenAI amid increasing regulatory scrutiny of Big Tech’s influence over artificial intelligence.
Microsoft, a $13 billion investor in OpenAI, resigned from its non-voting observer position, citing trust in the organization’s direction and recent advancements. Apple had planned to play a similar role, but with Microsoft’s exit, it will also choose not to be a board observer.
Regulators from the US and Europe have voiced worries regarding the power big tech corporations like Microsoft have over the advancement of AI. As with other major IT firms in the US, Microsoft has included OpenAI’s services into its Windows and Copilot AI platforms and is counting on the new technology to spur growth.
In an internal memo, Microsoft shares its confidence in OpenAI’s path and has observed notable development from the company’s new board, so they no longer need to play the spectator role.
Microsoft is coming under increased scrutiny because of its claimed superiority in artificial intelligence. The United States is separately investigating whether Microsoft properly notified antitrust officials about its deal with Inflection AI and why the company is so dominant in AI.
Additionally, European regulators announced that they will question Microsoft’s competitors regarding OpenAI’s exclusive use of its technology, and the competition authority in the United Kingdom is considering a more thorough examination of the partnership.
The regulatory pressure is a reflection of wider worries about the concentration of AI innovation within a small number of very large tech firms. Concerns over Amazon’s $4 billion partnership with AI startup Anthropic and Nvidia’s hegemony in the AI chip industry are also being voiced in the UK.
Major U.S. tech companies like Microsoft, Nvidia, Alphabet, and Amazon have invested heavily in AI, raising regulatory concerns about concentrated access to advanced technologies. Non-financial agreements include Apple’s partnership with OpenAI to bring ChatGPT to the iPhone and Microsoft’s hiring of Inflection AI’s Mustafa Suleyman.
OpenAI thanked Microsoft for its confidence in the board and company direction. The organization plans regular stakeholder meetings with partners like Thrive Capital and Khosla Ventures to enhance collaboration on safety and security.
Also Read: Nvidia, Meta, Microsoft, and Google Highlight AI Risks in SEC Reports
