Microsoft and Apple Quit their OpenAI Board Seats – Here’s Why

Microsoft and Apple have both quit their seats on the OpenAI board. This unexpected move was confirmed by representatives from both companies earlier this week.

Microsoft, which has invested over $13 billion in OpenAI, has been a significant partner for OpenAI since 2019, significantly contributing through its Azure cloud computing services. This tech company got a non-voting seat on OpenAI’s board in November 2023. This happened after Sam Altman, the CEO of OpenAI, was rehired following his unexpected removal.

In a letter to OpenAI on Tuesday, Microsoft’s deputy general counsel, Keith Dolliver, expressed satisfaction with the progress made by the new board over the past eight months. According to The Financial Times report, Dolliver stated:

We have witnessed significant progress … and are confident in the company’s direction.

Because of this confidence, Microsoft, the Washington-based tech company, decided that its limited role as an observer on the board was no longer needed. It announced its immediate withdrawal from the board seat.

With Microsoft’s resignation, OpenAI will not have observer seats on its board from now onwards.

Apple’s role, while less public, has been important in shaping OpenAI’s approach to user privacy and technology standards as it announced the integration of ChatGPT 4o into the latest versions of Mac (macOS Sequoia), iPad (iPadOS 18), and iPhone (iOS 18) operating systems.

Apple recently got an observer seat on OpenAI’s board but has decided not to take the position. An Apple fellow, Phil Schiller, who manages the App Store by Apple, was expected to take the seat later this year.

Why Microsoft and Apple Quit OpenAI Board Seats?

Regulators in both Europe and the U.S. are investigating tech giants like Microsoft, Nvidia, Amazon, and Google for possible anti-competitive behavior in the AI industry. OpenAI’s board changes come at a time when these investigations are ongoing.

The UK and the European Commission are also looking into Microsoft’s collaboration with OpenAI to ensure fair competition. So, the recent antitrust scrutiny seems to be the cause of this resign from non-voting seats on the OpenAI board.