Microsoft and Apple Leave OpenAI Board Amid AI Scrutiny

Microsoft has stepped down from its position on OpenAI’s board, and Apple will also forego a similar role, according to reports on Wednesday. This unexpected decision comes as major technology companies are navigating intensified scrutiny from regulators concerning their investments and influence in the artificial intelligence sector.

Alex Haffner, a competition partner at the UK-based law firm Fladgate, commented to Forbes on the situation. “It is challenging not to see Microsoft’s departure as significantly influenced by the ongoing antitrust and competition scrutiny surrounding its (and other major tech companies’) involvement with emerging AI entities like OpenAI,” he stated. Despite Microsoft’s recent relief when the EU Commission closed its investigation into the company’s dealings with OpenAI, the regulator has maintained a vigilant stance on the intricate network of relationships within the AI industry. Haffner noted that this ongoing focus on big tech’s connections with AI providers suggests that Microsoft, among others, needs to carefully reassess how they structure their AI-related partnerships in the future.

For nearly a decade, Big Tech companies enjoyed a period of relatively minimal antitrust oversight. However, in recent years, their vast influence and market dominance have come under increasing pressure from global competition regulators. In the U.S., the Federal Trade Commission (FTC) and other regulatory bodies have intensified their investigations into various aspects of the tech industry. These inquiries cover crucial areas such as the monopolistic tendencies of tech giants in online marketplaces and apps, privacy and advertising practices by companies like Meta, and potentially anti-competitive acquisitions, exemplified by Microsoft’s $69 billion acquisition of gaming giant Blizzard.

The surge in interest in generative AI, sparked by the release of OpenAI’s ChatGPT in late 2022, has driven a fierce race among tech giants and startups to develop advanced AI tools. This competition has led to the emergence of several notable products, including OpenAI’s Sora, Google’s Gemini, Microsoft’s Copilot, Adobe’s Firefly, and Anthropic’s Claude. As these advancements unfold, concerns have arisen regarding the technology’s impact on employment and its potential to disseminate misinformation. Regulators are increasingly worried about the dominance of major players such as chipmaker Nvidia, Microsoft, and Amazon, which may stifle smaller competitors. Microsoft’s substantial investments in AI, including a $13 billion stake in OpenAI and a $4 billion acquisition of the startup Inflection, have attracted significant attention. Similarly, Google’s plans to preinstall its Gemini AI on Samsung devices and Amazon’s $4 billion investment in Anthropic are also under scrutiny. These moves reflect a broader trend of aggressive investment and acquisition strategies aimed at securing a competitive edge in the rapidly evolving AI landscape.

Sam Altman, co-founder of OpenAI, has an estimated net worth of $1 billion, derived mainly from his ventures as an investor rather than from equity in OpenAI. Before launching OpenAI, Altman was the founder of social mapping company Loopt and served as a partner and president at the tech startup accelerator Y Combinator. His decision to focus on OpenAI came after a successful career in investment and startup incubation. Altman’s investment portfolio includes notable stakes in fintech company Stripe, social media platform Reddit, and nuclear fusion venture Helion. His substantial net worth reflects his prominent role in the tech industry and his influence in shaping the future of AI technology.