Microsoft has relinquished its board observer role at OpenAI. The company cited substantial improvements in OpenAI’s governance over the past eight months as the reason for stepping down.
Microsoft’s deputy general counsel, Keith Dolliver, stated in a letter to OpenAI that the tech giant no longer finds its role on the board necessary due to the notable progress made by the newly formed board.
The observer position, assumed by Microsoft in November last year when CEO Sam Altman resumed leadership at OpenAI, allowed the company to attend board meetings and access confidential information without voting rights, particularly regarding the selection of directors.
Microsoft's involvement was initially intended to provide insights into the board’s activities without compromising its independence. This decision came after Microsoft invested more than USD 10 billion in OpenAI, signaling a deep financial and operational partnership.
The exit also aligns with increasing scrutiny from antitrust authorities in the EU and US, who are examining the partnership between Microsoft and OpenAI amidst broader concerns about competition in the AI sector. By stepping down, Microsoft possibly intends aims to show its independence and address regulatory concerns while continuing to ramp up competition in selling AI technology to enterprise customers.
Further, Microsoft is broadening its AI portfolio on the Azure platform and has appointed Inflection’s CEO to lead its consumer AI division. This move is seen as an effort to diversify beyond its reliance on OpenAI and bolster revenue.
In a related development, Apple announced plans to integrate OpenAI’s ChatGPT into its devices. However, despite earlier expectations, Apple will not take an observer role on OpenAI's board.
