Tech Giants Back Off Amid Rising Regulatory Scrutiny

The tech world has been abuzz with news that Microsoft and Apple will not be taking up advisory roles on the board of directors at OpenAI, the company behind the revolutionary chatbot, ChatGPT. This move comes as regulators in the United States and Europe are taking a closer look at the influence Big Tech companies have over smaller artificial intelligence startups.

Big Tech’s influence on AI startups is under scrutiny

The partnership between Microsoft and OpenAI has been a subject of interest, with Microsoft investing billions into OpenAI and receiving a non-voting seat on the company’s board. Meanwhile, Apple was set to take an advisory board role after striking a deal to integrate ChatGPT into its products. However, these plans are no longer going ahead.

OpenAI has confirmed that its board will not include any advisory seats going forward, and instead, the company will hold regular meetings with major investors and partners. These meetings will be open to Apple and Microsoft, allowing them to continue providing feedback and advice.

The Rise of AI Startups

The rise of OpenAI and other AI startups has shaken up the tech industry, with many analysts suggesting that these newcomers could potentially usurp some of the power of dominant players like Microsoft. However, these AI startups have become heavily reliant on investment from Big Tech companies, which has raised concerns about the impact on competition.

AI startups are shaking up the tech industry

Regulatory Scrutiny

The Federal Trade Commission (FTC) has announced that it will be investigating whether the investments and partnerships between AI companies and Big Tech are stifling true competition. This comes after the FTC reached a deal with the Justice Department to probe Microsoft and OpenAI’s partnership.

FTC logo

OpenAI has been facing a growing number of lawsuits from news organizations, authors, and other content creators who claim that the company used their copyrighted work to train its AI algorithms without permission or payment.

The Future of AI

Despite the regulatory scrutiny, OpenAI and other AI startups are pushing forward, forming alliances with Big Tech to gain access to billions of paying customers around the world. As the AI industry continues to grow, it will be interesting to see how these partnerships evolve and how regulators respond to the changing landscape.

The future of AI is uncertain