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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