Tech giants Microsoft and Apple have reportedly decided not to take positions on the board of AI company OpenAI, amid increasing regulatory scrutiny.

Microsoft sent a letter to OpenAI announcing its departure from the board, Bloomberg reported on July 10, citing anonymous sources.

In April 2023, Microsoft made a significant investment of $13 billion in OpenAI.

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

"We no longer believe that our limited role as an observer is necessary."

Apple was also expected to take an observer role on the OpenAI board as part of an agreement to integrate ChatGPT into iPhone devices, but it appears that this will not proceed either. Apple declined to comment.

"We are grateful to Microsoft for expressing confidence in the board and the direction of the company, and we look forward to continuing our successful collaboration," OpenAI stated.

This move comes as the European Commission and U.S. antitrust authorities are examining the partnership between Microsoft and OpenAI as part of broader concerns about competition in the rapidly growing sector.