Photo credit: Zac Wolff/Unsplash

Microsoft has relinquished its seat as an observer on the OpenAI board, while Apple has decided against taking up a similar position amid increasing global antitrust concerns regarding Big Tech’s influence in the artificial intelligence sector, multiple news outlets report.

According to Bloomberg’s sources, Microsoft formally communicated its withdrawal from the board in a letter to the ChatGPT-maker OpenAI. The decision comes after eight months of holding a non-voting observer position, which granted Microsoft access to confidential information and board meetings without voting rights.

Apple, initially expected to take up a similar observer role, has also opted out, according to the Financial Times. Earlier this month, the iPhone creator and OpenAI announced their partnership, which will see ChatGPT’s capabilities integrated with the Big Tech’s products.

The development follows heightened regulatory scrutiny of the partnership between Microsoft and OpenAI, particularly concerning the exclusivity clauses in their agreement and the potential anti-competitive implications. European regulators have launched an investigation into the tie-up, while the Federal Trade Commission in the United States is scrutinizing investments made by Big Tech companies in generative AI startups.

Read more: Apple to delay new AI features in EU due to Big Tech rules

In its letter, Microsoft, which has invested $13 billion in OpenAI, cited the significant progress made by the startup’s newly formed board and expressed confidence in the company’s direction as reasons for relinquishing its observer role. The company emphasized that OpenAI remains one of its “most valued partners.”

OpenAI, in response, expressed gratitude for Microsoft’s confidence in the board and the company’s trajectory, affirming its commitment to continuing their successful partnership.

Despite stepping back from the board, Microsoft continues to play a crucial role in OpenAI’s operations, providing essential computing power and cloud storage worth billions of dollars. The collaboration has also propelled Microsoft to an early lead in the generative AI race, with its AI services driving sales at its Azure cloud computing platform.

Following the move, OpenAI would reportedly focus on regular meetings with strategic partners like Microsoft and Apple, as well as investors such as Thrive Capital and Khosla Ventures. This approach aims to inform and engage key stakeholders.

Read more: AI investments drive $55.6B US VC funding in Q2: PitchBook