Microsoft and Apple's OpenAI Retreat

Microsoft and Apple Bow Out of OpenAI's Boardroom 

Snapshot 👀

• Microsoft and Apple give up their observer seats on OpenAI's board of directors.

• The move comes as regulatory scrutiny of generative AI intensifies in Europe and the US.

• OpenAI adopts a new approach to engaging strategic partners and investors.

Key Highlights 👇🏼

Tech giants Microsoft and Apple are bowing out of their seats on the board of directors at OpenAI, the company behind the wildly popular ChatGPT. The decision comes as regulators in Europe and the US are turning up the heat on generative AI.

Microsoft, which holds the title of OpenAI's biggest investor, is ditching its non-voting observer seat on the nonprofit board – a position it took up just last November. According to a letter from Microsoft's Deputy General Counsel Keith Dolliver, the company feels the seat is no longer necessary given the progress made by OpenAI's newly formed board.

Meanwhile, Apple, which had grand plans to join the board following its recent AI development deal with OpenAI, has also decided to pass on its seat. The partnership, announced at Apple's Worldwide Developers Conference in June, would have seen ChatGPT integrated into iOS 18, with Apple's Phil Schiller taking on an observer role.

OpenAI spokesperson Steve Sharpe confirmed Microsoft's departure, expressing gratitude for the company's confidence in the board and the startup's direction. He also shed light on OpenAI's new approach to engaging key partners and investors, led by CFO Sarah Friar.

Why it's important ⬇️

The exodus of Microsoft and Apple from OpenAI's board is a clear sign that the regulatory landscape for generative AI is shifting. As scrutiny intensifies in Europe and the US, tech giants are treading carefully to avoid any potential antitrust issues.

The European Commission has already hinted at a possible investigation into Microsoft's deals with generative AI developers, including its investment in OpenAI. The regulator is concerned about the impact of these partnerships on market dynamics.

Musk’s Neuralink Gears Up for Round Two of Human Brain Implants

Snapshot 👀

• Elon Musk announces a second volunteer will soon receive Neuralink's brain implant.

• The company is making surgical tweaks to avoid issues faced by its first participant.

• Musk teases a next-gen implant with double the bandwidth but no timeline yet.

Key Highlights 👇🏼

Elon Musk's brain-computer interface (BCI) company, Neuralink, is gearing up for its second human trial. In a live-streamed update on X (formerly Twitter), Musk revealed that another brave volunteer will undergo surgery to receive the experimental brain implant "in the next week or so."

The announcement comes on the heels of Neuralink's first study participant, Noland Arbaugh, experiencing some hiccups with his implant. A few weeks after surgery, the device partially detached from Arbaugh's brain, causing a loss of function. Undeterred, Neuralink is making adjustments to the surgical procedure and implant placement to avoid similar issues with the second participant.

Neuralink's coin-sized device, which Musk likens to "a Fitbit or an Apple Watch with tiny wires or electrodes," is designed to help paralyzed individuals control computers using their thoughts. While Arbaugh initially enjoyed newfound independence, controlling a cursor with his mind to play games, email friends, and browse the web, the malfunction was a setback.

Now, Neuralink is determined to learn from Arbaugh's experience. The surgical team plans to insert the implant's threads deeper into the brain tissue, track their movement, and "sculpt the surface of the skull" to ensure a snug fit. Musk hopes to implant the device in the "high single digits" of participants this year.

Why it’s important ⬇️

Neuralink's ambitious project isn't just about restoring independence to those with paralysis. Musk sees it as a way to "mitigate the civilizational risk of AI" by fostering a closer symbiosis between human and digital intelligence.

While the current focus is on improving the surgical process and implant design, Musk also teased a next-generation device with double the number of threads and electrodes. Although no timeline was provided, this upgrade could potentially double the bandwidth of the brain-computer connection.

OpenAI's China Ban Sparks Scramble for GPT Alternatives

Snapshot 👀

• OpenAI cuts off API access to mainland China and Hong Kong, forcing developers to adapt.

• Chinese devs turn to VPNs and third-party providers to maintain GPT access.

• Some consider switching to domestic AI models as an alternative to OpenAI.

Key Highlights 👇🏼

It's a brave new world for Chinese AI developers as OpenAI, the company behind the wildly popular ChatGPT, has pulled the plug on API access in mainland China and Hong Kong. The move, which took effect on Wednesday, has sent devs scrambling to find workarounds and contingency plans.

According to interviews with seven developers across China, the go-to solution for now is using virtual private networks (VPNs) and third-party services that still have GPT access. One developer even managed to access OpenAI using a Chinese VPN service that advertises ChatGPT access despite the company's efforts to block such connections.

Another loophole? Microsoft's Azure cloud service, which operates in China through a local joint venture. While OpenAI itself may be off-limits, Chinese businesses can still tap into its conversational AI models by signing up for Azure China.

However, as the regulatory landscape shifts and the US-China tech war rages on, the future of GPT access in China remains murky. Some developers are exploring backup plans, such as migrating to Anthropic's Claude Sonnet 3.5 or even switching to domestic AI platforms.

Why it's important ⬇️

OpenAI's decision to block China is a major blow to the country's burgeoning AI scene, which has come to rely on GPT as the industry benchmark. The move highlights the geopolitical tensions at play and the challenges Chinese developers face in navigating an increasingly complex landscape.

While workarounds like VPNs and third-party services offer temporary relief, they're far from foolproof. As OpenAI and other global AI firms tighten their grip on access, Chinese devs may find themselves increasingly boxed in.

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