US software company Microsoft has resigned its observer seat on the board of OpenAI. According to Microsoft, there is no need for him to hold the seat because OpenAI’s leadership has improved over the past eight months. Getting the board seat has drawn scrutiny from regulators on both sides of the Atlantic, Reuters reported today.
Non-voting observation
Microsoft took over as a non-voting observer on the OpenAI board last November when Sam Altman returned as CEO. Getting the seat meant Microsoft could attend board meetings and have access to confidential information. But he had no voting rights and could not make decisions on the election or selection of directors.
The observer seat and Microsoft’s investment of more than $10 billion in OpenAI raised concerns from antitrust authorities in Europe, Britain, and the United States. This is because of concerns about how much control Microsoft has over OpenAI. OpenAI focuses on the development of artificial intelligence (AI) and operates the chatbot ChatGPT.
Continued concerns
Microsoft added that OpenAI has made significant progress in the past eight months. It is therefore confident that the company is heading in the right direction. In light of this, it believes its limited role as an observer is no longer necessary.
The European Commission (EC) said in June that the partnership between the two firms would not be subject to EU merger rules because Microsoft does not have control over OpenAI. Instead, the EC will seek third-party opinions on exclusivity clauses in the deal. In contrast, antitrust authorities in the US and the UK continue to have concerns as well as questions about Microsoft’s influence on OpenAI and its independence.
Source: Czech Press Office
