Microsoft reportedly abandoned a position as an observer on OpenAI’s board of directors while Apple declined the same role, at a time of increased regulatory scrutiny of generative AI (genAI) companies.

Financial Times (FT) reported Microsoft sent a letter to OpenAI stating it is withdrawing from the board position “effective immediately”.

CNBC reported Keith Dolliver, deputy general counsel for Microsoft, stated in the letter that the seat is no longer necessary as it “witnessed significant progress” from a new board formed in January.

Microsoft assumed the non-voting board seat in November 2023 following a chaotic period which included the board firing and then re-hiring CEO Sam Altman within a matter of days.

The tech giant’s $13 billion investment in OpenAI to use its ChatGPT chatbot gave Microsoft an early lead over rivals Google and Amazon Web Services in the heated genAI sector.

Apple was poised to take an observer seat on OpenAI’s board after striking a deal to embed ChatGPT across its iPhone, iPad and Mac devices as part of a suite of new AI capabilities, but FT reported it will no longer accept the position.

The news site further reported OpenAI will now host regular meetings with partners including Microsoft and Apple, as well as investors Thrive Capital and Khosla Ventures, as part of a fresh approach to inform and engage with its strategic partners.

Earlier this month the European Commission announced it is requesting additional information from Microsoft to look at whether its arrangement with OpenAI violated antitrust rules. The EC concluded in April that Microsoft’s investment in OpenAI did not violate European Union merger rules as the former did not gain control over the latter.

The US Department of Justice (DoJ) and Federal Trade Commission (FTC) reportedly plan to launch antitrust investigations into the perceived AI dominance of Microsoft, Nvidia and OpenAI.