Technology giants Microsoft and Apple have reportedly decided not to take up board seats at the artificial intelligence (AI) firm OpenAI, amid increasing regulatory scrutiny.

Microsoft has sent a letter to OpenAI announcing its withdrawal from the board, Bloomberg reported on July 10, citing an anonymous person familiar with the matter.

The withdrawal came about a year after the Windows software maker made a massive $13 billion investment in OpenAI in April 2023.

“Over the past eight months we have witnessed significant progress from the newly formed board and are confident in the company’s direction,” Microsoft reportedly wrote in its memo to OpenAI, adding:

“We no longer believe our limited role as an observer is necessary.”

In contrast to recent reports that Apple would also get an observer role on OpenAI’s board as part of a landmark agreement announced in June, OpenAI will have no board observers after Microsoft’s departure, the company reportedly said.

“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 stated.

This is a developing story, and further information will be added as it becomes available.