Microsoft And Apple Both Gives Up Their Position From OpenAI’s Board Observer Seat

Microsoft has decided to give up its position as a board observer at OpenAI, which has faced scrutiny from regulators in the US and Europe. They stated that this step is no longer necessary as OpenAI’s governance has significantly improved over the past eight months.

Apple, which recently announced plans to integrate OpenAI’s ChatGPT chatbot into its devices, was expected to take on the board observer role at OpenAI. However, according to a report in the Financial Times citing a knowledgeable source, Apple has decided not to pursue this role. Apple did not respond to requests for comment.

An OpenAI spokesperson mentioned that the company plans to adopt a new approach to engagement. This includes holding regular meetings with key partners like Microsoft and Apple, as well as with investors such as Thrive Capital and Khosla Ventures. Last November, Microsoft assumed a non-voting observer role on OpenAI’s board, following CEO Sam Altman’s return to lead the company, which oversees the generative AI chatbot ChatGPT.

The seat allowed Microsoft to attend OpenAI’s board meetings and access confidential information but did not grant voting rights on matters like electing directors. The observer seat, along with Microsoft’s investment of over $10 billion in OpenAI, raised concerns among antitrust regulators in Europe, the UK, and the US about the extent of its influence over OpenAI.

Microsoft mentioned that OpenAI’s new partnerships, innovations, and expanding customer base since Sam Altman returned to lead the startup were reasons for relinquishing its observer seat.

“Over the past eight months we have witnessed significant progress by the newly formed board and are confident in the company’s direction. Given all of this we no longer believe our limited role as an observer is necessary,” it said in a letter to OpenAI dated July 9.