Microsoft has decided to step down from its position as a board observer at OpenAI, despite its significant financial involvement following a multi-billion dollar investment in the AI company’s for-profit arm. This move was announced on Wednesday, coming approximately eight months after Microsoft had assumed this role during a reformation of OpenAI’s board following the temporary removal of CEO Sam Altman.
The withdrawal occurs against a backdrop of increasing regulatory scrutiny over AI investments made by major tech corporations, including Microsoft and Amazon. A source from the Federal Trade Commission, speaking to Reuters, suggested that Microsoft’s altered role is unlikely to alleviate regulatory concerns regarding its partnership with OpenAI.
In related news, the Financial Times has reported that Apple has decided against pursuing a position on the OpenAI board. Microsoft explained its decision in a letter to OpenAI, excerpts of which were published by Axios, stating, “We accepted the non-voting board observer role at a time when OpenAI was in the process of rebuilding its board… Given the significant progress we have observed, we no longer believe our role as an observer is necessary.”
An OpenAI spokesperson expressed gratitude towards Microsoft for its confidence in the board and the company’s direction, as reported by The Verge. They highlighted that under CFO Sarah Friar’s leadership, OpenAI is developing new strategies to better inform and engage strategic partners like Microsoft and Apple, along with investors such as Thrive Capital and Khosla Ventures.
