KUALA LUMPUR – In a surprising turn of events, tech giants Microsoft and Apple have decided to step down from their positions on the board of OpenAI, the company behind the generative chatbot ChatGPT.
According to reports from Bernama and German news agency dpa, Microsoft, the largest investor in OpenAI, has relinquished its observer role on OpenAI’s nonprofit board, a seat it held since November last year.
Microsoft’s Deputy General Counsel, Keith Dolliver, said in a letter that this move was prompted by the significant progress achieved by the new board.
Similarly, Apple, which had been set to join the board following a recent AI development agreement, will not be taking up its seat.
At the June Worldwide Developers Conference, Apple announced its collaboration with OpenAI to integrate ChatGPT into iOS 18, and Phil Schiller, former marketing head and App Store chief, was slated for an observer role on OpenAI’s board later this year.
OpenAI spokesperson Steve Sharpe confirmed Microsoft’s departure, expressing gratitude for the company’s support and emphasising the continuation of their successful partnership.
“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.”
“Under the leadership of CFO Sarah Friar, we are establishing a new approach to informing and engaging key strategic partners – such as Microsoft and Apple – and investors – such as Thrive Capital and Khosla Ventures.”
This strategic shift by Microsoft and Apple underscores the increasing regulatory scrutiny that major tech firms face regarding their influence over emerging AI technologies.
According to Forbes, these changes reflect a significant reorientation as the tech giants navigate the competitive and regulatory landscapes.
Alex Haffner, a competition partner at UK law firm Fladgate, told Forbes that “It is hard not to conclude that Microsoft’s decision has been heavily influenced by the ongoing competition/antitrust scrutiny of its (and other major tech players) influence over emerging AI players such as OpenAI.”
Despite the European Commission recently dropping its probe into Microsoft and OpenAI, the regulator continues to examine the intricate relationships between big tech companies and AI providers.
The tech industry, which enjoyed minimal antitrust oversight for years, now faces mounting pressure from global regulators.
Investigations are targeting various aspects of the digital economy, including the dominance of online marketplaces by companies like Apple and Google, Meta’s privacy practices, and significant acquisitions such as Microsoft’s US$69 billion purchase of gaming company Blizzard.
The rise of generative AI, initiated by OpenAI’s ChatGPT in late 2022, has intensified the competition among tech giants to develop advanced AI tools.
This has raised concerns about job displacement and the spread of misinformation, with regulators worried about the market power of companies like Nvidia, Microsoft, and Amazon potentially stifling smaller competitors.
The European Commission is particularly focused on the impact of partnerships between major digital market players and generative AI developers. In January, the Commission announced it was reviewing whether Microsoft’s investment in OpenAI falls under the EU Merger Regulation, indicating ongoing scrutiny of such alliances. – July 11, 2024
