Microsoft has officially dropped its observer role on the board of OpenAI, while Apple has decided not to take up a similar position, claim sources speaking to the Financial Times.
It was rumoured that Apple was set to gain an observer seat on the OpenAI board, with longtime executive Phil Schiller to lead that role on behalf of the iPhone maker. Now, that appears to have changed, say sources. Apple considered the role but has decided against it. ChatGPT is being integrated into the iPhone, iPad and Mac with iOS 18 and more and the observer role was apparently part of the deal.
Microsoft, which has invested $13 billion in the ChatGPT creator, announced in a letter to OpenAI that its withdrawal from the board would be “effective immediately.” The move comes amid regulatory concerns from the EU and US about competition in the AI sector.
Instead, OpenAI plans to host regular meetings with key partners such as Microsoft, Apple, Thrive Capital, and Khosla Ventures. This is part of a new strategy under Sarah Friar (she used to lead the Nextdoor app), OpenAI’s newly appointed CFO, to engage strategic partners, according to an OpenAI spokesperson.
Microsoft’s departure follows last year’s insane drama at OpenAI when CEO Sam Altman was briefly fired and then reinstated.
Keith Dolliver, Microsoft’s deputy general counsel, explained that the observer role provided valuable insights without compromising the board’s independence. He added that the progress of the newly formed board made Microsoft’s position no longer necessary, but emphasized that OpenAI remains one of Microsoft’s “most valued partners.”
OpenAI’s reliance on Microsoft for computing power and cloud storage has been extremely important, driving growth in Microsoft’s Azure cloud services. Despite antitrust concerns, both companies have downplayed their close ties. The European Commission and the US Federal Trade Commission are examining investments by major tech companies, including Microsoft, in AI startups.
Given how people and not just regulators are getting worried about the future of AI, it also makes for a good PR move by Microsoft and Apple to distance themselves from OpenAI’s board.
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