OpenAI has been doing well despite everything that it has gone through, from copyright lawsuits to executive ousting, but there's only so much tech giants can take before they step back. It appears that the last straw for both Apple and Microsoft is the latest EU antitrust probe.
Microsoft, Apple Leaves the OpenAI Board
Microsoft has been a prominent power within OpenAI's operations. It had an initial $1 billion investment in 2019, and that amount has since ballooned to $13 billion. Since then, the company has been tuning in to every decision the AI startup makes.
The board of directors had a seat just for Microsoft, although the company was more of an observer as it had a non-voting role. Due to the continuing scrutiny from the European Commission, Microsoft decided to withdraw its position on the board.
At first, the EU Commission investigated just how significant Microsoft's control was in OpenAI, but eventually concluded that it didn't break any merger rules, as per Engadget. However, the probe does not end there.
The Commission's Executive VP for Competition Policy, Margrethe Vestager said that authorities asked Microsoft to provide additional information about its agreement with the AI company "to understand whether certain exclusivity clauses could have a negative effect on competitors."
It is already shaping up to be a larger antitrust investigation, which is likely the biggest factor behind the move. It could also be why Apple already backed out before it could even take the observer board seat.
Microsoft expressed that it left as it already trusted what OpenAI's plans were, so the board seat was no longer necessary. Instead, OpenAI would conduct regular meetings with key partners, including Apple and Microsoft.
An OpenAI spokesperson shared a response from the company: "We're grateful to Microsoft for voicing confidence in the board and the direction of the company, and we look forward to continuing our successful partnership."
OpenAI is Busy with Other Problems
As if the scrutiny wasn't enough of a headache, the AI company has also been facing other problems in the last two weeks. It already fixed a major ChatGPT vulnerability on its Mac app, but bad actors already managed to deal some damage unrelated to it.
Just a few days ago, it was reported that OpenAI's internal AI details were stolen in the 2023 breach. The data held the design of the company's artificial intelligence technologies, as per Reuters, which the hacker accessed through the company's internal messaging systems.
Fortunately, the bad actor didn't access the systems where OpenAI kept and built its AI. The company kept it under wraps believing that the breach was the work of a private individual and not a national security threat.
In fact, the company is doing well when it comes to disrupting covert operations that use its AI models for "deceptive activity." It has taken down five operations so far, although it's likely that there are far more threats that the company has yet to discover and shut down.
