Microsoft has announced its decision to forgo its observer seat on OpenAI's board, with Apple reportedly following suit. Despite these moves, concerns about market monopolization persist, drawing scrutiny from regulatory bodies like the Federal Trade Commission (FTC), while unresolved AI safety issues remain a focal point.
According to CNBC and the Financial Times, Amba Kak, executive director of the AI Now Institute, believes Microsoft's decision coincides with heightened global regulatory scrutiny and is an attempt to obscure the relationships between big tech companies and AI startups.
Antitrust concerns loom
Citing an insider source, Financial Times reported that Apple will also not take the observer seat on OpenAI's board, a position offered as part of a deal to integrate ChatGPT into Apple devices. Apple has declined to comment on the matter.
OpenAI, under its new CFO Sarah Friar, announced a "new approach to informing and engaging key strategic partners," which includes hosting regular meetings with partners like Microsoft, Apple, and investors Thrive Capital and Khosla Ventures.
An FTC insider suggested that Microsoft's move is unlikely to alleviate the FTC's concerns. A statement from Microsoft did not mention regulatory bodies but expressed satisfaction with OpenAI's governance structure and business strategies, thus opting to relinquish the observer seat.
In early June 2024, former employees of OpenAI and Google DeepMind signed an open letter urging AI companies to address employees' rights to speak out about AI risks and to establish whistleblower protections. The letter accused companies of evading regulation in pursuit of profits and failing to adequately inform the public.
Ripples from the withdrawal
Following the release of the letter, sources indicated that the FTC and the Department of Justice have launched antitrust investigations into OpenAI, Microsoft, and Nvidia. Joao Sedoc, assistant professor at NYU Stern School of Business, warned that Microsoft's withdrawal might negatively impact AI industry safety, as Microsoft possesses extensive expertise and experience in this area, which OpenAI lacks.
Current OpenAI board members include CEO Sam Altman, former NSA Director Paul Nakasone, Quora founder Adam D'Angelo, former US Treasury Secretary Larry Summers, former Salesforce co-CEO Bret Taylor, former head of the Bill & Melinda Gates Foundation Sue Desmond-Hellmann, former Sony chief legal officer Nicole Seligman, and Instacart CEO Fidji Simo.
