Microsoft has decided to step down from its position on the board of OpenAI, stating that its presence is no longer necessary as the artificial intelligence company has made improvements in its governance following internal turmoil last year. In an announcement made on Tuesday, Microsoft confirmed its resignation as an observer on OpenAI’s board, effective immediately. The company expressed gratitude for the support shown by OpenAI’s leadership and board during this decision-making process.
The unexpected departure of Microsoft comes as antitrust regulators are increasingly scrutinizing the powerful AI collaboration. Microsoft has invested an estimated $13 billion in OpenAI. European Union regulators announced they would reexamine the partnership under antitrust rules, while British competition authorities have also been investigating the arrangement.
Microsoft obtained the board seat after a period of internal conflict that saw OpenAI CEO Sam Altman dismissed and then quickly reinstated, along with the removal of board members involved in the CEO’s ousting. In its letter, Microsoft acknowledged the progress made by the newly restructured board over the past eight months and expressed confidence in the company’s current trajectory, leading to the belief that their role as an observer was no longer essential.
Following Microsoft’s exit, OpenAI will no longer feature observer seats on its board. In response to Microsoft’s departure, OpenAI expressed appreciation for the confidence Microsoft had shown in the board and company direction, emphasizing a commitment to maintaining their successful partnership. The decision by Microsoft to relinquish its board seat is thought to have been heavily influenced by increasing regulatory scrutiny on big tech companies and their relationships with AI startups.
OpenAI plans to adopt a new strategy for engaging and updating key strategic partners like Microsoft and Apple, as well as investors such as Thrive Capital and Khosla Ventures. This will involve regular meetings to keep stakeholders informed about progress and to enhance collaboration concerning safety and security measures.
