Microsoft has resigned from its position on OpenAI‘s board, stating that its role is no longer necessary due to the improved governance of the ChatGPT creator since last year’s boardroom turmoil.
Microsoft has stepped down from its seat on OpenAI’s board, citing that its participation is no longer needed due to improvements in OpenAI’s governance following last year’s boardroom chaos.
In a letter on Tuesday, Microsoft announced its immediate resignation from its observer role on the AI company’s board. “We appreciate the support shown by OpenAI leadership and the OpenAI board as we made this decision,” the letter stated.
This unexpected departure comes as antitrust regulators intensify their scrutiny of the powerful AI partnership. Microsoft has reportedly invested $13 billion in OpenAI. Last month, European Union regulators announced they would re-examine the partnership under the bloc’s antitrust rules, while British competition watchdogs are also investigating the deal.
Microsoft assumed its board seat after a power struggle that saw OpenAI CEO Sam Altman fired and quickly reinstated, with the board members responsible for his ousting being removed.
“Over the past eight months, we have seen significant progress from the newly formed board and are confident in the company’s direction,” Microsoft stated in its letter. “Given all of this, we no longer believe our limited role as an observer is necessary.”
With Microsoft’s departure, OpenAI will no longer have observer seats on its board.
“We are grateful to Microsoft for voicing confidence in the Board and the direction of the company, and we look forward to continuing our successful partnership,” OpenAI said in a statement.
Alex Haffner, a competition partner at U.K. law firm Fladgate, suggested that Microsoft’s decision to leave the board was likely influenced by increasing scrutiny of big tech companies and their connections with AI startups.
“It is clear that regulators are very much focused on the complex web of inter-relationships that Big Tech has created with AI providers, hence the need for Microsoft and others to carefully consider how they structure these arrangements going forward,” he said.
OpenAI announced it would adopt a new strategy for “informing and engaging key strategic partners” such as Microsoft and Apple, as well as investors like Thrive Capital and Khosla Ventures. This strategy includes regular meetings to update stakeholders on progress and enhance collaboration on safety and security.