To avoid antitrust scrutiny, Microsoft and Apple choose to withdraw from the OpenAI board of directors

On July 10, U.S. time, Microsoft announced its departure from OpenAI's board and relinquished its observer seat. This move comes as regulatory bodies intensify their scrutiny of tech giants' investments in AI startups.

Microsoft sent a letter to OpenAI on Tuesday, stating it had resigned effective immediately. Microsoft believes the stability of OpenAI's board makes its participation unnecessary. OpenAI, led by Sam Altman, is the company behind ChatGPT.

Microsoft said, "Over the past eight months, we have witnessed significant progress by the new board and are confident in the company's direction. Considering this, we no longer see our role as a limited power observer as necessary." Microsoft emphasized that OpenAI remains "one of Microsoft's most valuable partners."

However, sources from the U.S. Federal Trade Commission (FTC) indicated that even with Microsoft leaving OpenAI's board, it does not alleviate antitrust concerns. The FTC is investigating Microsoft's investments in OpenAI.

Microsoft has invested $13 billion in OpenAI

Previously, Microsoft was OpenAI's largest shareholder and partner, investing over $13 billion and owning 49% of the company. In January, Microsoft Vice President Dee Templeton joined OpenAI's new board as a non-voting observer. Templeton could attend OpenAI board meetings and access critical information but did not have voting rights on elections or board member selections. Microsoft aims to leverage OpenAI's services to advance its Windows and Copilot AI platforms.

Microsoft previously entangled in a "coup" scandal

In November of last year, OpenAI's board abruptly decided to remove Sam Altman from his CEO position and oust him from the board, sparking a "coup" storm within OpenAI.

The board stated that "we concluded that Sam Altman was not always forthright in his communications with the board, hindering its ability to perform its duties."

However, the board did not specify where Altman was not forthright.

This "palace drama" ended just a few days later with Altman's victory: he returned as CEO shortly after his departure, and the board was restructured with former Salesforce co-CEO Bret Taylor as chairman.

This incident also caught the attention of the U.S. Securities and Exchange Commission (SEC), which began investigating whether OpenAI's investors were misled.

Currently, OpenAI's board consists of eight members, chaired by Bret Taylor, with other members including former U.S. Treasury Secretary Larry Summers, former OpenAI board member Adam D'Angelo, and former NSA Director Paul Nakasone.

Apple also exits OpenAI's board

Meanwhile, sources revealed that Apple's plans for an executive to join OpenAI's board as an observer have been withdrawn.

In June, Apple announced a partnership with OpenAI to integrate its Siri voice assistant with OpenAI's chatbot ChatGPT.

Apple subsequently announced on July 3 that it had obtained an "observer" seat on OpenAI's board.

However, with Microsoft's departure from OpenAI's board, Apple also chose to withdraw its decision to join the board.

OpenAI to seek new collaboration methods

OpenAI stated it would adopt a new approach to "inform and engage key strategic partners," such as Microsoft, Apple, Thrive Capital, and Khosla Ventures, by holding regular meetings to update stakeholders on progress and strengthen collaboration on safety and security.

Antitrust scrutiny intensifies

In June, two U.S. federal regulatory bodies agreed that the FTC would lead the review of OpenAI, investigating Microsoft's investments in OpenAI and its agreements with other AI companies. Last month, EU regulators also announced they would re-examine this partnership under the EU's antitrust rules to understand OpenAI's exclusive use of its technology.

Antitrust scrutiny could reshape the AI industry

Some experts believe that strict antitrust rulings could change how big companies and emerging AI firms conduct business, possibly reducing enthusiasm for new collaborations and hindering innovation.

Ryan M. Yonk, a senior research fellow at the American Institute for Economic Research, told the media that banning exclusive collaborations or setting significant barriers for direct partnerships between generative AI companies and large tech firms could make capital acquisition more challenging, slowing their growth.

Last week, reports surfaced that the French competition authority plans to charge Nvidia, the world's most valuable AI chipmaker, with anti-competitive behavior, becoming the first regulator to take such action, further escalating regulatory pressure.

Nvidia's rapid rise in the AI boom has drawn close regulatory attention.

The company's market value has soared to over $3 trillion, with its stock price more than doubling this year alone. However, this success has raised concerns about potential market abuse.