[AI]Microsoft and Apple back away from OpenAI board

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and Apple have decided against taking up board seats at OpenAI. The decision comes as regulatory bodies intensify their scrutiny of big tech’s involvement in AI development and deployment.

According to a

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report on July 10, citing an anonymous source familiar with the matter,

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has officially communicated its withdrawal from the OpenAI board. This move comes approximately a year after the Redmond-based company made a substantial $13 billion investment in OpenAI in April 2023.

In a memo addressed to OpenAI,

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stated: “Over the past eight months we have witnessed significant progress from the newly formed board and are confident in the company’s direction.” The tech giant added, “We no longer believe our limited role as an observer is necessary.”

Contrary to recent reports suggesting that Apple would

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on OpenAI’s board as part of a landmark agreement announced in June, it appears that OpenAI will now have no board observers following

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’s departure.

Responding to these developments, OpenAI expressed gratitude towards

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, stating, “We’re grateful to

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for voicing confidence in the board and the direction of the company, and we look forward to continuing our successful partnership.”

This retreat from board involvement by major tech players occurs against a backdrop of mounting regulatory pressure. Concerns about the potential impact of big tech on AI development and industry dominance have prompted increased scrutiny from regulatory bodies worldwide.

In June, ********* Union regulators announced that OpenAI could face an EU antitrust investigation over its partnership with

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. EU competition chief Margrethe Vestager also

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for local regulators to seek additional third-party views and survey firms such as

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,

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, Meta, and ByteDance’s TikTok regarding their AI partnerships.

For now, we conclude that

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has not acquired control of

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under Merger Regulation.

We will keep monitoring the relationships between all key players in the AI sector, incl.

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& OpenAI.

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— Margrethe Vestager (@vestager)

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The decision by

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and Apple to step back from board positions at OpenAI could be interpreted as a strategic move to mitigate potential regulatory challenges. By maintaining a more arm’s length relationship with the AI firm, these tech giants may be attempting to avoid accusations of undue influence or control over AI development.

Alex Haffner, a competition partner at

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, said:

“It is hard not to conclude that

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’s decision has been heavily influenced by the ongoing competition/antitrust scrutiny of its (and other major tech players) influence over emerging AI players such as Open AI.

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scored a ‘win’ in this regard at the end of June when the EU Commission announced it was dropping its merger control probe of

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and Open AI, an investigation originally announced when Open AI re-shaped its board structure at the time of Sam Altman’s on-off departure from the company.

However, the Commission confirmed it was still looking at the competitive impact of the broader arrangements between the parties and it is clear that regulators are very much focussed on the complex web of interrelationships that big tech has created with AI providers, hence the need for

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and others to carefully consider how they structure these arrangements going forward.”

As AI continues to play an increasingly critical role in technological advancement and societal change, the balance between innovation, competition, and regulation ******** a complex challenge for both industry players and policymakers.

The coming months will likely see continued scrutiny of AI partnerships and investments, as regulators worldwide grapple with the task of ensuring fair competition and responsible AI development.

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