Microsoft drops observer seat on OpenAI board amid regulator scrutiny

Startup’s new approach means Apple will no longer be able to appoint executive to similar role

Microsoft has withdrawn its observer seat on the OpenAI board and Apple will no longer be able to appoint an executive to a similar role, amid regulatory scrutiny of big tech’s relationship with artificial intelligence startups.

Microsoft, the largest financial backer of the ChatGPT developer, announced the move in a letter to the startup, as first reported by the Financial Times. It said the resignation of the observer role, which does not carry a vote in board decisions, was “effective immediately”.