Microsoft On OpenAI Board Sans Voting Power: What's Their Game?
Sam Altman has officially returned to OpenAI as CEO and is "excited" about his new stint. But along with Altman, Microsoft is also solemnizing its debut at the AI company and will be part of OpenAI’s new board as a non-voting observer. The development was officially notified by Altman in a blog post that underlined, “I am excited that our new board will include Microsoft as a non-voting observer.”
Following the unexpected removal of Altman, Microsoft will be seen in a different role rather than just sticking to its position as an investor. The tech major proved to be a solid support for both Altman and OpenAI amid the shocking Altman ouster controversy two weeks ago by not only offering a new role to the then-shunned CEO but also promising to continue its commitment to the ChatGPT-creator OpenAI.
Underscoring Microsoft's strong backing during the unceremonious firing and its aftermath, Altman expressed his gratitude to the Microsoft team on X. He said, “Satya, Kevin, Amy and Brad have been incredible partners throughout this, with exactly the right priorities all the way through.”
He emphasised that “they had our backs and were ready to welcome all of us if we couldn’t achieve our primary goal. We made the right choice to partner with Microsoft.”
This is not the first time the tech company has been credited by Altman. Previously, the CEO applauded the OpenAI-Microsoft partnership that began in 2019 when Microsoft announced its USD 1 billion investment into OpenAI’s project of building Artificial General Intelligence (AGI), offering wide economic benefits.
Back then, Altman took to Twitter (now X) to praise Microsoft. He had tweeted, "Microsoft’s Azure provides the AI infrastructure to power the GPT language models." Be it conversational AI, ChatGPT, or text-to-image modelling like Dall-E—OpenAI can seamlessly launch its products, all thanks to Microsoft, Altman had emphasised.
Much like Altman, majority of experts and business leaders appreciated Microsoft’s stand during the OpenAI saga. Maran Nagarajan, CEO of KaarTech said, "The tech giant is always at the forefront of the impending AI revolution. Its dual role as ‘saviour and investor’ amidst the crisis acknowledged the company’s vital understanding that both Altman and OpenAI play a significant role in steering an AI future that contributes responsibly to enriching human experiences."
OpenAI-Microsoft’s Partnership Terms:
Microsoft’s Support:
Microsoft’s New Role
As a non-voting, observer on the OpenAI board, Microsoft’s representatives will have the authority to attend OpenAI’s board meetings. It will also have access to confidential information but will be barred from voting rights on matters including electing or choosing directors.
Sandeep Uppal, Founder and Managing Partner at Acuvon Consulting said, “With Microsoft now holding a position as a board member but lacking voting power, who is overseeing and ensuring that the utilisation of AI aligns with the best interests of humanity, rather than becoming a potential detriment."
Uppal stressed the investor’s new role underscores the need for transparency, ethical considerations and a vigilant approach to ensure responsible corporate conduct and the ethical deployment of AI technologies.
