Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Microsoft and Apple abandon OpenAI board seats amid regulatory scrutiny

by July 11, 2024
July 11, 2024
Microsoft and Apple abandon OpenAI board seats amid regulatory scrutiny

Microsoft and Apple have withdrawn from their board observer seats at OpenAI in response to global regulatory concerns about the relationships between big tech firms and influential AI start-ups.

Microsoft, which has invested $13 billion in OpenAI, informed the ChatGPT maker that its resignation was “effective immediately” less than nine months after assuming the role. Apple, having recently announced a partnership with OpenAI to integrate its chatbots into its products, will not proceed with its planned board seat, according to the Financial Times.

The world’s leading generative AI companies, including OpenAI, Anthropic, and Mistral, maintain close ties with tech giants that have funded them with billions of dollars. Regulators worry that these alliances could reinforce Silicon Valley’s dominance over AI technology, hinder competition, and amplify their power and influence.

Last December, the UK’s Competition and Markets Authority (CMA) expressed its concerns, describing the development of AI as “unrivalled in economic history” and emphasising that competition between developers is crucial for “guiding the market towards positive outcomes for people and businesses.”

The CMA is currently considering whether Microsoft’s partnership with OpenAI could be classified as a merger, similar to Amazon’s tie-up with Anthropic. It has invited public comments ahead of a potential preliminary investigation.

The regulator is scrutinising the “multi-year, multi-billion dollar investment, collaboration in technology development, and exclusive provision of cloud services by Microsoft to OpenAI” to determine if Microsoft exerts material influence over the business. By relinquishing the board seat, Microsoft aims to address one of the main regulatory concerns regarding its investment.

The European Commission also reviewed the deal, concluding that the observer seat did not alter OpenAI’s independence or Microsoft’s influence over OpenAI, although it is still considering an antitrust investigation.

In the US, the Federal Trade Commission is examining the competitive implications of investments and partnerships between large tech firms and generative AI start-ups.

OpenAI experienced significant upheaval in November last year when CEO Sam Altman was fired and rehired over a weekend amid a dispute over the company’s strategic direction. Following this turmoil, Microsoft took an observer role on the board. Given its substantial investment, many were surprised Microsoft did not already have a seat.

In a letter, Microsoft stated: “We accepted the non-voting board observer role at a time when OpenAI was in the process of rebuilding its board. This position provided insights into the board’s transitional work without compromising its independence.” With a new board now in place, Microsoft expressed confidence in the company’s direction and concluded that its “limited role as an observer is no longer necessary.”

Alex Haffner, a competition partner at Fladgate, commented: “It is hard not to conclude that Microsoft’s decision has been heavily influenced by the ongoing competition scrutiny of its (and other major tech players’) influence over emerging AI players such as OpenAI. It is clear that regulators are very much focused on the complex web of inter-relationships that big tech has created with AI providers, hence the need for Microsoft and others to carefully consider how they structure these arrangements.”

Read more:
Microsoft and Apple abandon OpenAI board seats amid regulatory scrutiny

0
FacebookTwitterGoogle +Pinterest
previous post
Millions of people not working is ‘unacceptable’ says Labour
next post
Staff allowed to choose working hours in new trial

You may also like

Getting to Know You: Michael Carroll, Council Member...

March 14, 2023

Elon Musk scraps Twitter’s work from home policy...

November 10, 2022

How to protect yourself when using payment methods...

November 11, 2022

China’s exports surge, pushing trade surplus to $99bn...

July 19, 2024

UK office property sales facing largest discounts since...

August 13, 2024

FCA warns financial services firms over AI fraud

July 13, 2023

New data reveals over half a million UK...

March 8, 2023

Darktrace on a high amid escalating cybersecurity concerns

April 12, 2024

Drakeford plans new tax hit on private schools...

September 25, 2024

How to stay competitive and foster growth

January 10, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved