Microsoft has resigned from OpenAI’s board of directors, claiming that its presence is no longer required because the ChatGPT maker’s governance has improved after boardroom upheaval erupted last year.
In a letter dated Tuesday, Microsoft announced that it was resigning “effective immediately” as an observer on the board of the artificial intelligence startup.
“We appreciate the support shown by OpenAI leadership and the OpenAI board as we made this decision,” according to the letter.
Microsoft Quits OpenAI Board Seat As Antitrust Scrutiny Of Artificial Intelligence Pacts Intensifies
The stunning resignation comes as antitrust regulators strengthen their scrutiny of the strong AI collaboration. Microsoft reportedly committed $13 billion to OpenAI.
Last month, European Union regulators announced they would re-examine the cooperation under the bloc’s antitrust regulations, while the United States Federal Trade Commission and Britain’s competition watchdog have also looked into the agreement.
Microsoft grabbed the board position during a power battle in which OpenAI CEO Sam Altman was ousted and then rapidly reinstated, while the board members responsible for the ousting were driven out.
“Over the past eight months we have witnessed significant progress by the newly formed board and are confident in the company’s direction,” according to the letter from Microsoft. “Given all of this we no longer believe our limited role as an observer is necessary.”
Following Microsoft’s exit, 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,” according to a press release.
According to Alex Haffner, a competition partner at U.K. law firm Fladgate, it’s easy to deduce that Microsoft’s decision to step down from the board seat was largely impacted by increased scrutiny of big technology companies and their ties to AI startups.
Microsoft Quits OpenAI Board Seat As Antitrust Scrutiny Of Artificial Intelligence Pacts Intensifies
“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,” said Mr. Musk.
OpenAI stated that it would adopt a new approach to “informing and engaging key strategic partners” such as Microsoft and Apple, as well as investors such as Thrive Capital and Khosla Ventures, by holding monthly meetings to update stakeholders on progress and ensure stronger collaboration on safety and security.
SOURCE | AP
