Microsoft ditches OpenAI board observer seat to stave off antitrust scrutiny

Microsoft ditches OpenAI board observer seat to stave off antitrust scrutiny          

• Source at U.S. FTC says move shows Microsoft sees potential antitrust exposure
• Apple will not take an observer role on OpenAI's board, Financial Times reports
• Microsoft's OpenAI partnership still a merger issue with UK antitrust watchdog

 has given up its board observer seat at OpenAI in a move aimed at easing U.S. and UK antitrust regulators' concerns about the extent of its control over the AI startup amid the soaring popularity of generative artificial intelligence.

But the change was unlikely to resolve concerns by the U.S. Federal Trade Commission, a source at the agency said on Wednesday. The FTC is conducting an antitrust review of deals by Big Tech firms and top AI companies.

The move shows Microsoft sees significant potential antitrust exposure and is trying to get ahead of it, the FTC source said.

A spokesperson for Microsoft did not immediately reply to a request for comment on Wednesday.

Meanwhile, Apple (AAPL.O), open, which said last month it was bringing OpenAI's chatbot, ChatGPT, to its devices, will not take an observer role on OpenAI's board after being widely expected to do so, according to a person with direct knowledge of the matter. The person added that OpenAI has no future plans to offer any board observer roles. Apple did not respond to a request for comment.