Microsoft and Apple exit the OpenAI board observer seat—what’s the real story?

In an unexpected turn of events, Microsoft, one of the biggest investors and saviors during OpenAI’s leadership turmoil, recently gave up the observer seat on the OpenAI board. 

According to reports, Microsoft wrote a letter to OpenAI announcing its departure and saying that OpenAI no longer needs observations and that the AI giant is heading in the right direction. 

For many, it’s a shock because it has been almost 8 months since one of the biggest headlines of November 2023. For context, the OpenAI board fired Sam Altman, and then Microsoft played a pivotal role in bringing back Altman and restoring the board. Till now, Microsoft has been in the observer seat, witnessing the rise of OpenAI like never before. 

We no longer believe our limited role as an observer is necessary.

Microsoft wrote in a letter to Open AI

The tech giant also pointed out that in the past 8 months, OpenAI has made “Significant Progress.”

After this, OpenAI responded to the letter with gratitude, “We’re grateful to Microsoft for voicing confidence in the Board and the direction of the company.” 

Well, it’s evident how the $13 billion investment for Microsoft put OpenAI in top gear in the AI race, and now it has become a household name, from giving you basic bread toast recipes to solving enterprise problems. 

Not only this, but many were expecting Apple to take the observer seat, and now it’s reported that Apple is also out of the conversation. Antitrust authorities in the US and the EU are becoming more and more involved in OpenAI’s operations, which is why Apple and Microsoft decided to leave the company and stop being observers on its board.

To avoid any excessive influence that could hinder competition, the Federal Trade Commission and the European Commission have been closely monitoring the alliances between major IT corporations and up-and-coming AI players.

This sounds fair; however, even after leaving the observer seat, OpenAI plans to keep Apple and Microsoft in the loop. OpenAI announced a new approach to keep its stakeholders intact.

The concept of “Observer Seat” will be removed, and instead, OpenAI will organize “regular stakeholder meetings to share progress on our mission and ensure stronger collaboration across safety and security.”

Lastly, the exit of Microsoft and Apple clearly indicates that neither tech giant wants to be under any regulatory attention.