Apple and Microsoft Decide Board Seats Aren't Worth Legal Trouble Apple and Microsoft Decide Board Seats Aren't Worth Legal Trouble

Apple and Microsoft Decide Board Seats Aren’t Worth Legal Trouble

According to reports, Apple’s Phil Schiller will join OpenAI’s board this year as an observer due to ChatGPT on iOS 18. Though the initial report may have been accurate, it now appears that the companies have changed their plans. To avoid potential antitrust lawsuits, Apple will reportedly meet regularly with OpenAI instead of having an observer seat.

Both Apple and Microsoft have given up their observer positions on OpenAI’s board. As observers, they would have gotten insider info without voting power. Regulators have been closely watching big tech though, so the companies want to play it safe.

Now Apple and Microsoft will hold regular discussions with OpenAI instead of sitting in on board meetings. This keeps communication open while avoiding any legal issues. Microsoft remains a major investor and partner for OpenAI’s cloud services too.

Giving up board seats may seem strange, but it helps the companies cooperate freely. With looser ties, they can work together without risking antitrust problems down the line. Frequent meetings will still allow information sharing within legal bounds. When it comes to regulators, it’s better to dodge trouble altogether.

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