OpenAI board shake-up: Microsoft out, Apple backs away amid AI partnership scrutiny

🌈 Abstract

The article discusses Microsoft's withdrawal from its non-voting observer role on OpenAI's board, while Apple has opted not to take a similar position. The article also mentions the increasing regulatory scrutiny of Big Tech's investments in AI startups due to concerns about stifling competition.

🙋 Q&A

[01] Microsoft's withdrawal from OpenAI's board

1. Why did Microsoft withdraw from its non-voting observer role on OpenAI's board?

• According to the article, Microsoft's deputy general counsel, Keith Dolliver, sent a letter to OpenAI stating that Microsoft's board role was "no longer necessary" given the "significant progress" made by the newly formed board.

2. What is the nature of Microsoft's partnership with OpenAI?

• Microsoft remains a critical financial and technology resource for OpenAI, having invested over $10 billion in the company since early 2023. The partnership has given Microsoft early access to leading generative AI models, while providing OpenAI with Microsoft computing muscle that powers both new AI model training runs and services like ChatGPT.

3. How does OpenAI view its independence from Microsoft?

• The article states that while Microsoft's financial ties run deep into OpenAI, the ChatGPT maker remains "an entirely independent company governed by the OpenAI Nonprofit."

[02] Apple's decision not to join OpenAI's board

1. What was the initial plan for Apple's involvement with OpenAI's board?

• Last week, Bloomberg reported that Apple's Phil Schiller, who leads the App Store and Apple Events, might join OpenAI's board in an observer role as part of an AI deal.

2. What is the current status of Apple's involvement with OpenAI's board?

• The Financial Times now reports that Apple will not take up such a position, citing a person with direct knowledge of the matter.

3. What is OpenAI's new approach to engaging with its partners and investors?

• Instead of board observer roles, OpenAI plans to host regular meetings with partners such as Microsoft and Apple, as well as investors Thrive Capital and Khosla Ventures, as part of "a new approach to informing and engaging key strategic partners" under Sarah Friar, OpenAI's new chief financial officer.

[03] Regulatory scrutiny of Big Tech's investments in AI startups

1. What are the concerns of regulators regarding Big Tech's investments in AI startups?

• Regulators in the EU and US are worried that Big Tech's heavy influence in fast-growing AI startups may unreasonably edge out competition and establish de facto monopolies over key technologies that would stifle smaller competitors.

2. What actions have regulators taken in response to these concerns?

• In June, the FTC began looking into investments made by Big Tech companies (such as Microsoft, Amazon, and Google) in generative AI startups. The European Commission also announced it was exploring the possibility of an antitrust investigation into the Microsoft/OpenAI partnership.