SAN FRANCISCO (dpa-AFX) - Tech majors Microsoft and Apple are dropping
out of their respective seats on the Board of Directors of AI startup
OpenAI, the developer of generative chatbot ChatGPT, amid increasing
regulatory scrutiny in Europe and the US over generative AI,
according to 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 its 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.


Copyright dpa