## Changes in OpenAI Board: Microsoft Exits, Apple Reduces Involvement Amid AI Partnership Concerns
Microsoft Steps Down from OpenAI Board
In a notable development, Microsoft has chosen to step down from its role as a non-voting observer on OpenAI’s board. This decision, covered by Axios and Financial Times, arises as regulators in the EU and the US increase their scrutiny of Big Tech investments in AI startups. Keith Dolliver, Microsoft’s deputy general counsel, conveyed in a letter to OpenAI that the company’s board role is now “no longer necessary” due to the “significant progress” achieved by the new board.
Apple’s Decreased Engagement
Apple has also opted against taking a similar observer position on OpenAI’s board. Initially, there were speculations that Phil Schiller, who leads the App Store and Apple Events, might join OpenAI’s board as part of an AI deal. However, according to the Financial Times, Apple has decided not to pursue this role. This move mirrors a broader trend where tech giants are reevaluating their roles in AI startups due to regulatory pressures.
OpenAI’s Revised Approach to Partner Interaction
OpenAI plans to replace board observer roles for its partners with regular meetings involving key stakeholders such as Microsoft and Apple, as well as investors like Thrive Capital and Khosla Ventures. This strategy aims to keep partners informed and engaged without the formalities of board representation. Sarah Friar, OpenAI’s first chief financial officer, is leading this initiative.
Current OpenAI Board Members
OpenAI’s current voting board comprises eight members, including CEO Sam Altman, former US Treasury Secretary Larry Summers, former CEO of the Bill & Melinda Gates Foundation Sue Desmond-Hellmann, former NSA director Paul M. Nakasone, former Sony America President Nicole Seligman, Quora CEO Adam D’Angelo, and Instacart CEO Fidji Simo. Former Salesforce co-CEO Bret Taylor serves as the chair.
Increasing Regulatory Pressure
These changes come against a backdrop of heightened regulatory scrutiny over Big Tech’s influence in the AI sector. Microsoft remains a key financial and technological partner for OpenAI, having invested over $10 billion since early 2023. This partnership has provided Microsoft with early access to leading generative AI models and given OpenAI the computational resources to train new AI models and services like ChatGPT.
Regulators are concerned that such substantial investments could hinder competition and create monopolies over crucial technologies. In June, the FTC started investigating investments by companies like Microsoft, Amazon, and Google in generative AI startups. The European Commission is also considering an antitrust investigation into the Microsoft/OpenAI partnership.
Conclusion
Microsoft’s withdrawal from OpenAI’s board and Apple’s decision not to join reflect a growing trend of tech giants reexamining their roles in AI startups amidst heightened regulatory scrutiny. OpenAI’s new strategy for partner engagement aims to maintain robust relationships with key stakeholders while navigating complex regulatory environments. As the AI sector continues to evolve, these developments underscore the delicate balance between fostering innovation and ensuring regulation.
Q&A Session
1. Why did Microsoft step down from OpenAI’s board?
Microsoft stepped down from its non-voting observer role on OpenAI’s board due to the “significant progress” made by the new board, and to align with increasing regulatory scrutiny over Big Tech’s investments in AI startups.
2. Why did Apple choose not to take an observer role on OpenAI’s board?
Apple decided against taking an observer role on OpenAI’s board amid regulatory concerns and a broader reassessment of its involvement in AI startups.
3. What is OpenAI’s new strategy for engaging with partners?
OpenAI plans to convene regular meetings with key partners like Microsoft and Apple instead of maintaining formal board observer roles, aiming to keep partners informed and engaged without the formalities of board representation.
4. Who are the current members of OpenAI’s voting board?
OpenAI’s current voting board includes CEO Sam Altman, former US Treasury Secretary Larry Summers, former CEO of the Bill & Melinda Gates Foundation Sue Desmond-Hellmann, former NSA director Paul M. Nakasone, former Sony America President Nicole Seligman, Quora CEO Adam D’Angelo, Instacart CEO Fidji Simo, and former Salesforce co-CEO Bret Taylor as chair.
5. How much has Microsoft invested in OpenAI?
Microsoft has invested over $10 billion in OpenAI since early 2023.
6. What regulatory concerns exist regarding Big Tech’s investments in AI startups?
Regulators are worried that substantial investments by Big Tech companies in AI startups could stifle competition and create monopolies over essential technologies, thereby limiting opportunities for smaller competitors.
7. What actions have regulators taken regarding Big Tech’s influence in AI?
The FTC has launched investigations into investments by companies like Microsoft, Amazon, and Google in generative AI startups. Additionally, the European Commission is considering an antitrust investigation into the Microsoft/OpenAI partnership.
