Microsoft and Apple's Decision Not to Join OpenAI Board

Microsoft and Apple decline OpenAI board seats due to regulatory scrutiny and controversy over the ousted CEO.

### Microsoft and Apple Decline OpenAI Board Seats Amid Regulatory Scrutiny
* 💼  Microsoft and Apple have decided **not to take board seats at OpenAI**, despite significant investments in the company.
* 💰  Microsoft has invested **$13 billion in OpenAI**, but now believes its "**limited role as an observer is no longer necessary**".
* 🔍  Regulatory scrutiny, including antitrust considerations, may be a factor in their **decision**.
* 🤖  OpenAI has faced controversy, including the **ousting of its CEO in November**, prompting a **board restructuring**.
* 🌍  The US and Europe are both examining the relationship between Microsoft and OpenAI, particularly regarding **generative AI**.
* 🏢  OpenAI uses Microsoft's cloud services to build its models and products, raising questions about **data and talent acquisition**.
* 🔒  This situation reflects a broader "**land grab for resources and talent**" in the AI industry.

AND ALSO OUR TECH EXPERT. DO THEY NOT WANT TO BE ON THE BOARD BECAUSE THEY DON'T WANT THAT EXTRA SCRUTINY ON THEMSELVES? TOM: HERE'S THE BACKGROUND. MICROSOFT IS INVESTED 13 BILLION U.S. DOLLARS IN OPENAI. TAKE YOUR MIND BACK TO NOVEMBER OF LAST YEAR WHEN THE CEO AT THE TIME OF OPENAI WAS OUSTED. IT WAS SATYA NADELLA WHO MADE HIS RETURN TO OPENAI. AND HE WAS REAPPOINTED A FEW DAYS LATER, BUT WITH A VERY DIFFERENT BOARD. ONLY ONE PREVIOUS MEMBER OF THE BOARD REMAINED. HERE'S THE QUOTE I THINK IS INTERESTING FROM MICROSOFT. THEY SAID OVER THE PAST EIGHT MONTHS OR SINCE NOVEMBER, WE WITNESSED A GIVING AND PROGRESS FROM THE BOARD AND ARE CONFIDENT IN THE COMPANY'S DIRECTION. WE NO LONGER BELIEVE OUR LIMITED

ROLE AS AN OBSERVER IS NECESSARY. WHAT THEY'RE POINTING TO IS IT DOESN'T TELL ALL THE STORY. THERE IS THIS REGULATORY SCRUTINY. NEITHER HAS APPLE. APPLE HAD THIS PARTNERSHIP OPENAI IN BETTING IT INTO SOME OF THEIR SERVICES AS PART OF APPLE INTELLIGENCE. BOTH COMPANIES DECIDING THEY WON'T TAKE THOSE BOARD SEATS AT THIS POINT. FRANCINE: DOES IT MAKE IT LESS SAFE OR IS IT JUST THAT THEY DON'T WANT TO BE INVOLVED WITH OPENAI DIRECTLY? TOM: THERE'S BEEN SOME CONTROVERSY OVER THE OUSTED IN HIS FIRST -- IN THE FIRST PLACE. THE BOARD SEAT -- OPENAI SAY THEY LOVE DIFFERENT STRUCTURE TO KEEP MAJOR INVESTORS AND APPLE -- APPLE AND MICROSOFT INFORMED. EUROPE AND THE U.S., THE U.S. ARE LOOKING AT AN ANTITRUST CONSIDERATION WHEN IT COMES TO

MICROSOFT AND ITS DOMINANCE IN TERMS OF GENERATIVE AI. IN EUROPE, THEY ARE ALSO LOOKING AT THE EXTENT TO WHICH COMPETITORS OF MICROSOFT ARE FEELING THE PRESSURE. IS MICROSOFT LOOKING AT THE RELATIONSHIP BETWEEN MICROSOFT AND AI, USING THOSE IN THINGS LIKE WINDOWS AND COPILOT. OPENAI USING MICROSOFT CLOUD SERVICE TO BUILD OUT THEIR MODELS AND PRODUCTS. WE ARE ALSO GETTING SCRUTINY WHEN THEY ABSORB THAT. THIS IS A LAND GRAB FOR RESOURCES AND TALENT.

Microsoft, Apple Avoid OpenAI's Board

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Bloomberg Technology

Microsoft's $13 Billion Investment in OpenAI and Its Impact

Microsoft made a significant $13 billion investment in OpenAI, leading to a major overhaul of the company's board.

The CEO of Microsoft, Satya Nadella, played a key role in the restructuring of OpenAI's board.

The change in board members may be related to Microsoft's confidence in the direction of OpenAI and not necessarily a desire to avoid scrutiny.

Apple and OpenAI's Decision Not to Take Board Seats

Apple and OpenAI have decided not to take board seats in each other's companies at this point, possibly due to regulatory scrutiny and controversy.

The partnership between Apple and OpenAI in integrating OpenAI's services into Apple's products is facing antitrust considerations in the US and Europe.

This move raises questions about the companies' involvement and the impact on safety.

Microsoft's impact on generative AI is causing pressure on its competitors in Europe.

The relationship between Microsoft and AI is being utilized in Windows and Copilot, with OpenAI using Microsoft's cloud service for their models.

This has led to scrutiny and a competitive "land grab" for resources and talent in the AI industry.