Microsoft withdraws from OpenAI board observer position, Apple also withdraws plans to become observer
Microsoft, which has a partnership with OpenAI, which develops ChatGPT and other projects, has previously played an observer role on the OpenAI board of directors. However, on July 9, 2024, Microsoft announced that it would 'relinquish its observer role.'
Microsoft and Apple drop OpenAI seats amid antitrust scrutiny
Microsoft gives up OpenAI board observer seat
Microsoft and Apple ditch OpenAI board seats amid regulatory scrutiny - The Verge
https://www.theverge.com/2024/7/10/24195528/microsoft-apple-openai-board-observer-seat-drop-regulator-scrutiny
When CEO Sam Altman was suddenly dismissed from OpenAI in November 2023, Microsoft, which has a partnership with OpenAI , expressed its intention to welcome Altman and others to Microsoft. Later, when Altman returned to OpenAI , Microsoft sent one of its vice presidents, Dee Templeton, to the OpenAI board as an observer.
Observers do not have voting rights or director powers, but they attend Board meetings and have insight into how decisions are made at Board meetings.
However, on July 9, 2024, Microsoft notified OpenAI that it would relinquish its observer role. Microsoft said, 'As you know, we accepted the observer role at a time when OpenAI is in the process of restructuring its board of directors. This role provides insight into the board's activities without compromising our independence, and we are grateful for the opportunity to serve as an observer during this time of change.' In addition, as a reason for leaving the observer role, Microsoft said, 'In the eight months since I became an observer, I have seen the newly established board of directors make significant progress within OpenAI, and I am confident in the direction of the company. Given this, I believe that my limited role as an observer is no longer necessary.'
'We thank Microsoft for their confidence in our board and the direction of the company, and look forward to a continued successful partnership,' said OpenAI spokesman Steve Sharp. 'Under CFO Sarah Friar's leadership, OpenAI is establishing new approaches to inform and engage key strategic partners, including Microsoft and Apple, and investors, including Thrive Capital and Khosla Ventures.'
Microsoft's actions are believed to be a response to growing antitrust concerns over the partnership between Microsoft and OpenAI. The UK Competition and Markets Authority (CMA) has announced that it will hear from stakeholders about the partnership between Microsoft and OpenAI in December 2023, and Windows Central, a foreign media outlet, said, 'Resigning as an observer could help convince authorities that Microsoft and OpenAI are sufficiently separated.'
OpenAI and Microsoft partnership comes under scrutiny from UK antitrust authorities, US also launches informal investigation - GIGAZINE
At WWDC24 held in June 2024, Apple announced a partnership with OpenAI and the personal AI Apple Intelligence , and it was reported that former head of marketing Phil Schiller would become an observer on the board of directors as part of the partnership.
Apple executive Phil Schiller appointed as board observer for OpenAI - GIGAZINE
However, according to the Financial Times, the plan to appoint Schiller as an observer to OpenAI has been scrapped, and instead regular meetings will be held with key partners, including Microsoft and Apple.
Apple has not commented on the reports.
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