Microsoft Corp. and Apple Inc. have decided not to sit on OpenAI’s board amid the regulatory scrutiny facing the ChatGPT developer, the Financial Times reported today.

Microsoft, OpenAI’s largest investor, received an observer seat on its board last November. The cloud computing and software giant is said to have given up the role on Tuesday. Apple, for its part, was likewise expected to become a board observer but has reportedly reversed course.

The development comes at a time when OpenAI is facing scrutiny from antitrust regulators in both the U.S. and the European Union. The artificial intelligence provider’s partnership with Microsoft is reportedly a particular focus. Microsoft has provided OpenAI with about $13 billion worth of funding and cloud infrastructure in exchange for a share of its profits, as well as the possibility of a future 49% stake.

In early June, the Wall Street Journal reported that the Federal Trade Commission is looking into the companies’ partnership. The FTC is reportedly concerned that Microsoft may have structured the deal to give it control of OpenAI without drawing regulatory attention. Later that month, the European Union’s top competition official revealed that the bloc may launch a probe into the companies over “certain exclusivity clauses” in their partnership agreement.

Microsoft took an observer seat on OpenAI’s board last December following the brief ouster of Chief Executive Officer Sam Altman. After Altman returned to the top post, the directors who had voted to fire him left the company and the board was restructured. Microsoft reportedly played a key role in securing Altman’s reinstatement.

Keith Dolliver, Microsoft’s deputy general counsel, informed OpenAI of the company’s plan to exit the board in a letter sent late Tuesday. “Over the past eight months we have witnessed significant progress from the newly formed board and are confident in the company’s direction,” the executive wrote. “Given all of this we no longer believe our limited role as an observer is necessary.”

An OpenAI spokesperson said that “we’re grateful to Microsoft for voicing confidence in the board and the direction of the company, and we look forward to continuing our successful partnership.”

About a week before Microsoft’s letter, Bloomberg cited sources as saying that Apple planned to take an observer seat on OpenAI’s board. The iPhone maker was reportedly set to receive the position as part of a partnership it had announced with the AI developer in June. According to the Financial Times, the iPhone maker no longer plans to join the board.

Apple’s collaboration with OpenAI will see it use ChatGPT to power parts of Apple Intelligence, an upcoming set of AI features for iPhones and Macs. Some of the ChatGPT-powered capabilities are set to become available in the iPhone maker’s document and image editing tools. Others will be integrated into Siri to enhance the AI assistant’s ability to answer user questions. 

Image: OpenAI