04:38 AM EDT, 07/10/2024 (MT Newswires) -- Microsoft ( MSFT ) and Apple ( AAPL ) have abandoned observer seats on OpenAI's board amid heightened regulatory scrutiny of investments in AI startups, multiple news outlets reported Wednesday.

Apple ( AAPL ), which recently announced a partnership with OpenAI, was expected to assume an observer role on the board but has decided against doing so, the Financial Times reported, citing a source with direct knowledge of the matter.

Microsoft ( MSFT ) said it opted not to take the observer seat since OpenAI has enhanced its governance considerably during the last eight months, according to a Reuters report.

A spokesperson for OpenAI said the company will adopt a new engagement strategy by regularly meeting with strategic partners including Microsoft ( MSFT ) and Apple ( AAPL ), Reuters reported.

Microsoft ( MSFT ), Apple ( AAPL ), and OpenAI did not immediately reply to MT Newswires' requests for comment.

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