July 10th, 2024

OpenAI board shakeup: Microsoft out, Apple backs away

Microsoft and Apple relinquish non-voting roles on OpenAI's board. Regulatory scrutiny on Big Tech's AI involvement prompts OpenAI to engage partners and investors directly. Microsoft's $10 billion investment remains, emphasizing OpenAI's independence.

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OpenAI board shakeup: Microsoft out, Apple backs away

Microsoft has stepped down from its non-voting observer role on OpenAI's board, with Apple also deciding against a similar position. Instead of board representation, OpenAI plans to engage with partners and investors through regular meetings. This change comes as regulatory bodies in the US and EU increase scrutiny on Big Tech's involvement in AI startups to prevent competition stifling. While Microsoft remains a significant financial and technological supporter of OpenAI, investing over $10 billion since 2023, the decision to withdraw from the board may be related to regulatory concerns. The FTC and European Commission are investigating Big Tech investments in AI startups, with a focus on preventing monopolies and unfair competition. Despite the deep financial ties with Microsoft, OpenAI emphasizes its independence as a nonprofit organization. The current OpenAI board includes prominent figures like Sam Altman, Larry Summers, and Sue Desmond-Hellmann, with plans to engage strategic partners under the leadership of CFO Sarah Friar.

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By @bcxall10 - 9 months
So the board consists of (former) U.S. Treasury, Gates Foundation, NSA, Sony, Quora, Instacart and Salesforce.

Confidence inspiring indeed. All your data will be totally safe.

By @gen3 - 9 months
> The development comes as regulators in the EU and US increase their scrutiny of Big Tech's investments in AI startups

Done for anti trust reasons, or because they want a bit more deniability when something goes wrong (data leak, copyright issues, NSA connections)?

Hasn't the FTC been fine with the existing structure as long as MSFT/AAPL/GOOGL/NVDA doesn't take ownership? Thats the reason why MSFT made the weird investment+chain to azure compute agreement.

By @pplante - 9 months
This is boring news. I was really looking forward to another episode of Boardroom Shakeup.

It's interesting that Microsoft and Apple have made such deep integrations and are forgoing any direct control or influence. I am sure there are plenty of nonofficial channels, but it still is surprising.

By @ChrisArchitect - 9 months
Related/source:

OpenAI board will not have Microsoft and Apple as observers

https://news.ycombinator.com/item?id=40923895

By @iamleppert - 9 months
OpenAI board is as odd as the Theranos board. All that's missing at this point is a five star general.