CUPERTINO (dpa-AFX) - Tech majors Microsoft Corp. and Apple Inc. are
dropping out of their respective seats on the Board of Directors of AI startup
OpenAI, the developer of generative chatbot ChatGPT, amid the increasing
regulatory scrutiny in Europe and the U.S. over generative AI, as per reports.

Microsoft, OpenAI's largest investor, has quit as an observer on OpenAI's
nonprofit board, a non-voting seat, which it took in November last year.
Microsoft's Deputy General Counsel Keith Dolliver, in a letter to OpenAI, said
the seat was no longer needed as the company had witnessed significant progress
from the newly formed board.

Further, Apple, which was planning to join the Board following its recent AI
development deal, is said to be no longer taking the Board seat. At the
Worldwide Developers Conference in June, Apple announced its partnership with
OpenAI to integrate ChatGPT into iOS 18. As part of the collaboration, Phil
Schiller, the former marketing head and chief of the App Store at Apple, was
selected to have an observer role on OpenAI's board, and was expected to join
later this year .

Confirming that Microsoft has given up its seat, OpenAI spokesperson Steve
Sharpe reportedly said, '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.'

The new approach by OpenAI is said to involve regular stakeholder meetings with
Microsoft and Apple to share progress on its mission and ensure stronger
collaboration across safety and security.

Microsoft took the non-voting board seat at OpenAI during the troubling period
of the startup last year, when its co-founder Sam Altman was ousted from the
Board and as CEO after alleging that he was not consistently candid in his
communications. Altman rejoined as CEO few days later, and also to the board
after an independent Special Committee investigation found that his conduct did
not mandate removal.

The news comes as the European Commission recently said Microsoft could face an
antitrust investigation as the regulator was looking into some of the deals
between large digital market players and generative AI developers and providers
to find the impact of these partnerships on market dynamics. The Commission in
January said it was checking whether Microsoft's investment in OpenAI might be
reviewable under the EU Merger Regulation.



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