In a recent development, tech giants Microsoft and Apple have decided to withdraw their observer seats on the board of OpenAI. This move has sparked regulatory scrutiny and raised concerns about antitrust issues surrounding Microsoft’s deal with the AI research organization.

OpenAI has confirmed Microsoft’s departure, expressing gratitude for the tech giant’s support and confidence during its tenure on the board. Despite the reshuffling, OpenAI plans to continue regular meetings with strategic partners, including Microsoft and Apple, to bolster safety and security collaboration.

This development comes amidst growing concerns over antitrust issues related to Microsoft’s partnership with OpenAI. The partnership is currently under investigation by regulators in the United Kingdom, European Union, and the United States. Microsoft’s observer role, which did not grant voting rights, raised concerns among competition regulators, leading to its eventual withdrawal from the board.

In response to Microsoft’s decision to give up its seat, OpenAI is now shifting its approach towards engaging key partners and investors. The organization has announced that regular stakeholder meetings will be held to ensure stronger collaboration with Microsoft and Apple moving forward.

The European Commission is scrutinizing exclusivity clauses in the agreement between Microsoft and OpenAI, adding to the growing concerns over the partnership. This comes at a time when investments in AI startups are facing increased regulatory scrutiny, prompting big tech companies to carefully consider their relationships with AI providers.

Microsoft, as the largest financial backer of the ChatGPT developer, decided to withdraw its observer seat on the OpenAI board due to concerns raised by competition regulators in the UK and US. The tech company believed that its role on the board was causing unease among regulators, prompting the decision to step back.

Overall, this shift in the relationship between tech giants and AI organizations highlights the evolving landscape of regulatory scrutiny in the tech industry. It remains to be seen how this decision will impact future collaborations between big tech companies and AI providers.

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