Due to strengthened regulatory efforts, the board of directors of OpenAI, a rising AI giant, will no longer have observers from Microsoft and Apple.
On July 10th local time, according to foreign media reports, as more and more regulatory agencies around the world begin to closely monitor large technology companies' investments in AI startups, Microsoft has given up its observer seat on OpenAI's board of directors. This move aims to alleviate concerns from antitrust regulators in the United States and the United Kingdom about its control over the startup, especially in the context of the increasing popularity of generative artificial intelligence. But according to a source from the agency on July 10th local time, this change is unlikely to address the concerns of the Federal Trade Commission (FTC) in the United States. The FTC is currently conducting antitrust reviews on transactions between large technology companies and top artificial intelligence companies.
A spokesperson for OpenAI stated that after Microsoft's exit, the company will no longer have board observers. Previously, it was rumored that Apple, which had the potential to obtain the same seat, would not join OpenAI's board of directors.
Microsoft withdraws from OpenAI board of directors
Microsoft is the largest shareholder and partner of OpenAI. In November 2023, Microsoft invested $13 billion in OpenAI and obtained an observer seat on the OpenAI board of directors.
This seat means that Microsoft can attend OpenAI's board meetings and access confidential information, and has the right to share a portion of OpenAI's subsidiary profits to a certain extent. But Microsoft does not own traditional equity in OpenAI and does not have voting rights in matters such as elections or selection of directors.
In January 2024, Microsoft Vice President Di Templeton joined OpenAI's new board of directors as a non voting observer. Templeton is able to represent Microsoft at OpenAI's board meetings and obtain key information, but does not have voting rights in OpenAI's elections or selection of directors.
This week, Microsoft stated in a letter to OpenAI that its decision to withdraw from the OpenAI board of directors will take immediate effect. Microsoft wrote in the letter: "In the past eight months, we have witnessed significant progress made by the new board of directors, and we are confident in the direction of the company's development. Considering these, we no longer believe that our role as limited power observers is necessary." Microsoft emphasized that OpenAI remains one of Microsoft's "most valuable partners.
Last month, European regulatory agencies announced an investigation into Microsoft's competitors to understand OpenAI's exclusive use of its technology. In addition, the Federal Trade Commission in the United States is also investigating whether Microsoft failed to properly notify antitrust agencies of its transaction with Reflection AI.
OpenAI responded by saying, "We appreciate Microsoft's confidence in the direction of the board and the company, and look forward to continuing our successful partnership
Apple will also give up its observer seat
According to informed sources, the plan for Apple executives to join OpenAI's board of directors as observers has also been shelved.
In June of this year, Apple announced a partnership with OpenAI, where its voice assistant Siri will collaborate with OpenAI's chatbot ChatGPT. Apple will be appointed as an observer to the OpenAI board of directors, led by Phil Schiller, an Apple researcher and head of the App Store.
The most noteworthy aspect of the collaboration between Apple and OpenAI is that the initial agreement between the two parties did not involve money, and in the future, both parties will focus on jointly exploring the distribution commission model. According to Bloomberg, Apple hopes to split the revenue from its AI business with tech companies such as OpenAI in the future. OpenAI, Google, and other companies provide AI services, while Apple plays the role of a platform and extracts commission sharing.
As for Apple itself, in the public opinion environment of being criticized for lagging behind Microsoft and Google in AI layout, the company can provide consumers with the AI functions they urgently need through cooperation. In addition, users can also access the paid version of ChatGPT on Apple devices, which may bring significant revenue to their app store.
Antitrust agencies are gradually strengthening their supervision of the AI industry
In early June this year, according to foreign media reports, two regulatory agencies of the US federal government reached an agreement. The Federal Trade Commission (FTC) will take the lead in reviewing OpenAI and investigate Microsoft's investment in OpenAI and agreements with other AI companies.
At the end of June, there were reports that the European Union was increasing its scrutiny of the AI industry, including re investigating Microsoft's cooperation and investment relationship with OpenAI.
According to Xinhua News Agency on July 10th, Margrethe Vestager, the European Commission's commissioner in charge of competition affairs, has warned large technology companies that the EU will continue to scrutinize their investment in start-ups in the field of artificial intelligence. She said at the end of last month that the European Union is seeking more information about the cooperation agreement with OpenAI from Microsoft in order to understand "whether certain exclusive clauses will have a negative impact on competition.". Microsoft is facing similar investigations from both the UK antitrust agency and the US Federal Trade Commission.
In November last year, after the "coup" scandal at OpenAI ended with CEO Sam Altman returning to the company, the OpenAI board announced a restructuring. At present, the OpenAI board of directors consists of eight members, chaired by Bret Taylor, former co CEO of cloud software giant Salesforce. Other board members include former US Treasury Secretary Larry Summers, former OpenAI board member Adam D'Angelo, and former NSA Director Paul M. Nakasone.
Daily Economic News Comprehensive Xinhua News Agency, Public Information