Microsoft, Apple drop OpenAI board plans

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Major tech companies are retreating from their push to secure board observer positions at OpenAI amid growing regulatory concerns. According to a report from Bloomberg, Microsoft (MSFT) will withdraw from the board and Apple (AAPL) will not join the board as planned due to OpenAI dropping the board observer position.

Catalyst co-hosts Seana Smith and Madison Mills breaks down the details.

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This post was written by Angel Smith

Video Transcript

Turning now to some big tech news Microsoft designing to step back from the board observer seat at open A I after the role drew regulatory scrutiny.

This comes after Apple also took itself out of the running for the role as according to reports here from the ftr big tech companies feeling the pressure from regulators in the US and the EU and that was the question that had been posed and something we have been talking about a little bit earlier here, Maddie and I think my answer to that is clearly it has generated some interest from regulators.

We talk about the outsize impact or, or some of that worry that has been circulating over the last several weeks about the outsized impact that some of these larger tech companies have had on A I when we talk about all the A I excitement, what exactly that has generated here from Wall Street, from investors from companies of the like.

And there has been some worry over the influence of that.

So you would think this move here from Apple from Microsoft here relinquishing at those observer board seats will make possible some of that scrutiny go away.

But I think only time is really going to tell on that matter.

Well, it’s really smart of you to focus on the regulatory piece because from the company perspective, we’re hearing them say things like we just no longer believe our limited role as an observer is necessary.

This follows, of course, Microsoft’s $13 billion investment in open A I then last November when Sam Allman was ousted from the board, the kind of resolution after sat in a kind of reinstated Sam on the board.

What you give micro a board seat.

Now, the company is saying, ok, we feel comfortable leaving them alone for a little bit.

They don’t need the parent in the room anymore.

But I think to your point shot, that’s a very convenient opportunity for them to take off the pedal from the gas a little bit there and have the opportunity to take a step back given the regulatory pressure that we’ve seen in Europe, obviously the UK and then of course, here in the US.

But then I have a broader question about whether or not the board is ready to have the right step out of the room.

And what that might mean for open A is future as we see continued questions about Sam Altman moving really quickly on A I Yeah, exactly.

And, and I think that is the question exactly what the future looks like for open A I, if they don’t have those observable uh role, um, on the board here from Apple and from Microsoft.

But again, from a regulatory perspective, just given what the chatter has been, it seems like that would have had some influence here within those decisions, but we’ll get some clarity.