Microsoft Leaves OpenAI Board Amid Scrutiny of AI Partnerships

MMicrosoft has resigned its seat on OpenAI’s board, saying its participation is no longer necessary because the maker of ChatGPT has improved its governance since being rocked by boardroom chaos last year.

In a letter on Tuesday, Microsoft confirmed that it was resigning, “effective immediately,” from its observer role 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 exit comes amid heightened scrutiny from antitrust regulators of the powerful AI partnership. Microsoft reportedly invested $13 billion in OpenAI.

European Union regulators said last month they would take a fresh look at the partnership under the 27-nation bloc’s antitrust rules, while British competition watchdogs are also reviewing the deal.

Microsoft took the board seat after a power struggle in which OpenAI CEO Sam Altman was fired and quickly reinstated, while the board members behind the dismissal were ousted.

“Over the past eight months, we have witnessed significant progress from the newly formed board and we are confident in the direction of the company,” Microsoft said in its letter. “Given all this, we no longer believe that our limited role as observers is necessary.”

With Microsoft’s departure, OpenAI will no longer have observer seats on its board.

“We are grateful to Microsoft for expressing confidence in the Board and the company’s direction and look forward to continuing our successful partnership,” OpenAI said in a statement.

It’s not hard to conclude that Microsoft’s decision to step down from its board position was heavily influenced by growing scrutiny of big tech companies and their links to AI startups, said Alex Haffner, competition partner at British law firm Fladgate.

“It’s clear that regulators are very focused on the complex web of interrelationships that Big Tech has created with AI vendors, hence the need for Microsoft and others to carefully consider how they structure these agreements in the future,” he said.

OpenAI said it would take a new approach to “inform and engage 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. in safety and security.

OpenAI and TIME have a technology and licensing agreement that allows OpenAI to access TIME’s archives.