Antitrust scrutiny intensifies, Microsoft (MSFT.US), Apple (AAPL.US) to exit OpenAI board
AInvestWednesday, Jul 10, 2024 3:11 am ET
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Microsoft (MSFT.US) and Apple (AAPL.US) have both declined to serve as observers on OpenAI's board, highlighting the increasingly strict scrutiny of the impact of large tech companies in the field of AI by antitrust regulators.

Microsoft, which has invested $13bn in OpenAI, informed the start-up that it was stepping down from the board, according to a person familiar with the matter. Apple was also expected to secure a similar observer seat, but a spokesperson for OpenAI said the company no longer had any board observers after Microsoft's departure.

The move comes after the European Commission last month said it would investigate Microsoft's rival for using its technology in a way that could harm OpenAI. The US is also expected to launch a separate antitrust probe into Microsoft's dominant position in the rapidly growing field.

In a memo to OpenAI, Microsoft said: “In the past eight months, we have made significant progress in standing up our new board and are confident in our direction.” “We no longer believe the observer role is necessary.”

Microsoft, which runs the Azure cloud computing service, is also facing scrutiny for other investments in the field.

The Federal Trade Commission is also investigating whether Microsoft failed to notify antitrust regulators about its deal with Inflection AI, a Washington-based software giant that agreed to pay $650m to the start-up in March for the right to use its AI software and hired most of Inflection's staff, according to a person familiar with the matter.

In a statement to Bloomberg, OpenAI said: “We thank Microsoft for their confidence in our board and company direction and look forward to continuing our successful partnership.” The statement did not directly comment on Apple or Microsoft's decisions.

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