Microsoft has given up an observer seat on OpenAI’s board that has drawn regulatory attention from both sides of the Atlantic, saying it was unnecessary after the AI start-up’s governance had improved significantly over the past eight months.
Apple, the maker of the iPhone, was also expected to take an observer role on the OpenAI board but did not, the Financial Times reported, citing a person with direct knowledge of the matter. Apple did not respond to a request for comment.
Microsoft took a non-voting observer position on OpenAI’s board last November after OpenAI CEO Sam Altman took over the reins of the company that operates generative AI chatbot ChatGPT.
The seat meant he could attend OpenAI board meetings and access confidential information, but he had no vote on matters including electing or electing directors.
The watchdog position and Microsoft’s more than $10 billion investment in OpenAI have raised concerns among antitrust watchdogs in Europe, Britain and the US about how much control it exercises over OpenAI.
Microsoft cited OpenAI’s new partnerships, innovation and growing customer base since Altman’s return to the startup as the reason he relinquished his observation post.
“Over the past eight months, we have witnessed significant progress by the newly formed board and are confident in the company’s direction. Given all of this, we no longer believe that our limited observer role is necessary,” the July 9 letter to OpenAI said.
EU antitrust regulators said last month that the partnership would not be subject to the merger bloc’s rules because Microsoft does not control OpenAI, but would instead seek a third-party opinion on exclusivity clauses in the deal.
In contrast, UK and US antitrust watchdogs still have concerns, as well as questions about Microsoft’s influence over OpenAI and the latter’s independence.
Microsoft and OpenAI are increasingly competing to sell AI technology to business customers, with the goal of generating revenue and demonstrating their independence to regulators in addressing anti-competitive concerns.
In addition, Microsoft is expanding its AI offerings on the Azure platform and has hired an Inflection CEO to lead its consumer AI division, widely interpreted as an attempt to diversify beyond OpenAI.
© Thomson Reuters 2024
