Microsoft has relinquished its seat on the board of OpenAI, saying its participation is no longer needed because the ChatGPT maker has improved its governance since being roiled by boardroom chaos last year.
In a Tuesday letter, Microsoft confirmed it was resigning, “effective immediately,” from its role as an observer on the artificial intelligence company’s board.
“We appreciate the support shown by OpenAI leadership and the OpenAI board as we made this decision,” the letter said.
The surprise departure comes amid intensifying scrutiny from antitrust regulators of the powerful AI partnership. Microsoft has reportedly invested $13 billion in OpenAI.
European Union regulators said last month that they would take a fresh look at the partnership under the 27-nation bloc’s antitrust rules, while the U.S. Federal Trade Commission and Britain’s competition watchdog have also been examining the pact.
Microsoft took the board seat following a power struggle in which OpenAI CEO Sam Altman was fired, then quickly reinstated, while the board members behind the ouster were pushed out.
“Over the past eight months we have witnessed significant progress by the newly formed board and are confident in the company’s direction,” Microsoft said in its letter. “Given all of this we no longer believe our limited role as an observer is necessary.”
With Microsoft’s departure, OpenAI will no longer have observer seats on its board.
“We are grateful to Microsoft for voicing confidence in the Board and the direction of the company, and we look forward to continuing our successful partnership,” OpenAI said in a statement.
It’s not hard to conclude that Microsoft’s decision to ditch the board seat was heavily influenced by rising scrutiny of big technology companies and their links with AI startups, said Alex Haffner, a competition partner at U.K. law firm Fladgate.
“It is clear that regulators are very much focused on the complex web of inter-relationships that Big Tech has created with AI providers, hence the need for Microsoft and others to carefully consider how they structure these arrangements going forward,” he said.
OpenAI said it would take a new approach to “informing and engaging key strategic partners” such as Microsoft and Apple and investors such as Thrive Capital and Khosla Ventures, with regular meetings to update stakeholders on progress and ensure stronger collaboration on safety and security.
Microsoft has recently announced its decision to resign from its board seat at OpenAI, a leading artificial intelligence research organization. This move comes amid increasing antitrust scrutiny of AI agreements and partnerships in the tech industry.
OpenAI was founded in 2015 with the mission of advancing artificial intelligence in a way that benefits humanity as a whole. Microsoft joined the organization as a founding partner and held a seat on its board of directors. However, the tech giant has now decided to step down from its board seat, citing the need to avoid any potential conflicts of interest or antitrust concerns.
The decision to resign from the OpenAI board comes at a time when tech companies are facing increased scrutiny over their AI agreements and partnerships. Regulators and lawmakers are becoming more concerned about the potential for anti-competitive behavior in the AI industry, particularly when it comes to data sharing and collaboration between companies.
Microsoft’s move to resign from the OpenAI board is likely a preemptive measure to avoid any potential legal challenges or regulatory actions. By stepping down from its board seat, Microsoft is signaling its commitment to complying with antitrust laws and regulations, and ensuring fair competition in the AI industry.
In a statement, Microsoft emphasized its continued support for OpenAI and its mission to advance artificial intelligence for the benefit of society. The company stated that it will maintain its partnership with OpenAI and continue to collaborate on research and development projects.
Overall, Microsoft’s decision to resign from the OpenAI board seat highlights the growing importance of antitrust scrutiny in the AI industry. As regulators and lawmakers continue to focus on ensuring fair competition and preventing anti-competitive behavior, tech companies will need to carefully consider their partnerships and agreements in the AI space to avoid potential legal challenges.
