Microsoft has exited OpenAI board

Regulatory scrutiny was again in focus for big-tech on Wednesday, with Microsoft (NYSE:MSFT) giving up its ‘observer’ seat on the OpenAI board.

As the same time, Apple is no longer expected to appoint someone to a similar role on the OpenAI board.

It comes after OpenAI has struck partnerships and tie-ups with ‘big tech’ firms seeking to leverage the ChatGPT maker’s AI models and expertise.

There’s also a backdrop of recent and recurring regulatory scrutiny which has seen investigation and censure of ‘big tech’ in different jurisdictions across the globe over a variety of matters including competition / anti-trust rules, data privacy and the accessibility of certain technologies by minors.

Microsoft, the largest investor in OpenAI with $13 billion, announced the move in a letter to OpenAI.

The company said the resignation of the observer role, which does not carry voting power, is effective immediately.

Microsoft stated that OpenAI's new board, formed after the sacking and reinstatement of CEO Sam Altman, is making significant progress. The company added, “Given all of this we no longer believe our limited role as an observer is necessary.”

Regulatory bodies, including the UK's Competition and Markets Authority and the US Federal Trade Commission, are investigating whether Microsoft’s partnership with OpenAI results in an "acquisition of control."

The European Commission is also scrutinizing exclusivity clauses in the agreement between the two companies.

Comments provided to media, by an OpenAI spokesperson said the San Francisco-based startup is establishing a new approach to “informing and engaging key strategic partners” like Microsoft and Apple.