Microsoft has decided to relinquish its observer seat on the board of OpenAI, a position that has faced regulatory scrutiny in both Europe and the United States. The tech giant stated that the governance at the AI startup has improved significantly over the past eight months, rendering the seat unnecessary.
Previously, Apple was expected to take on the observer role following its announcement last month of integrating OpenAI’s ChatGPT into its devices. However, the Financial Times reported, citing an insider, that Apple will not assume this position. Apple did not comment on the matter.
An OpenAI spokesperson indicated that the company plans to adopt a new engagement approach. This will involve regular stakeholder meetings with key partners such as Microsoft and Apple and investors like Thrive Capital and Khosla Ventures.
Microsoft assumed the non-voting observer role in November last year after OpenAI CEO Sam Altman reasserted his leadership. This position allowed Microsoft to attend board meetings and access confidential information without voting rights.
The observer seat and Microsoft’s substantial investment of over $10 billion in OpenAI raised concerns among antitrust regulators in Europe, the UK, and the US about Microsoft’s influence over the AI firm.
Microsoft cited OpenAI’s new partnerships, innovative strides, and an expanding customer base as reasons for stepping down from the observer role. In a letter dated July 9, Microsoft expressed confidence in OpenAI’s direction, stating that their limited role as an observer was no longer necessary.
Last month, EU antitrust regulators decided that the partnership between Microsoft and OpenAI did not fall under the bloc’s merger rules, given Microsoft’s lack of control over OpenAI. Nonetheless, the regulators plan to gather third-party perspectives on the exclusivity clauses within the agreement. In contrast, UK and US antitrust authorities continue to express concerns about Microsoft’s influence over OpenAI and the latter’s independence.
