Microsoft is separating itself from the AI startup OpenAI in response to the increasing scrutiny from regulators, following its $13 billion investment in the company in 2023.
Microsoft and Apple, industry leaders in technology, have reportedly declined to assume board positions at OpenAI, an artificial intelligence company, in response to the growing regulatory scrutiny.
Bloomberg reported on July 10, citing an anonymous individual with knowledge of the situation, that Microsoft sent a letter to OpenAI informing it of its decision to withdraw from the board.
The withdrawal occurred approximately one year following the Windows software manufacturer’s substantial $13 billion investment in OpenAI in April 2023.
Microsoft purportedly wrote in its memo to OpenAI, “We have observed substantial progress from the newly established board and are confident in the company’s trajectory over the past eight months.”
In contrast to recent allegations that Apple would also receive an observer role on OpenAI’s board as part of a landmark agreement disclosed in June, the company has reportedly stated that OpenAI will have no board observers after Microsoft’s departure.
“We are appreciative of Microsoft’s endorsement of the board and the company’s trajectory, and we anticipate the continuation of our prosperous partnership,” OpenAI declared.
At the time of publication, Cointelegraph did not receive a response from Microsoft or OpenAI regarding their potential membership on the OpenAI board.
The announcement coincides with the growing regulatory pressure on Big Tech companies regarding its potential influence on AI and industry dominance.
In June, European Union regulators disclosed that OpenAI may be subject to an EU antitrust investigation due to its partnership with Microsoft.
Margrethe Vestager, the EU competition chief, also stated that local regulators will conduct surveys of companies such as Microsoft, Google, Meta, and ByteDance’s TikTok in order to gather additional third-party perspectives regarding their AI partnerships.
The European Commission has previously stated that Microsoft may be subject to a sanction of up to 1% of its annual revenue in the EU if it fails to respond to a request for information regarding its Bing search engine and its associated generative AI services.
According to reports, Apple and OpenAI were reportedly in the process of actively contemplating the incorporation of generative AI technologies on iOS in April 2024.
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