OpenAI's board will forego observer seats amid scrutiny of the company's relations with big tech firms
Microsoft withdraws its observer seat on OpenAI's board and Apple's plans for a similar role are canceled, as both companies respond to increasing regulatory scrutiny of big tech's involvement with AI startups.
Microsoft has officially decided to leave its non-voting seat on OpenAI's board just months after its appointment, likely because of the increased pressure on both parties now that market regulators in Europe and the US have intensified their efforts to investigate the relationships between Microsoft and OpenAI, and big tech firms and AI startups, more generally. Following Microsoft's departure from OpenAI's board, the latter announced there would not be any more non-voting seats, which means Apple will no longer undertake an observer role, as earlier reports indicated.
Microsoft, OpenAI's largest financial backer with a $13 billion investment, cited confidence in the AI company's new board and the direction OpenAI was headed as reasons for its departure. According to Microsoft's statement, the belief that its role was no longer necessary led to the decision to step down from OpenAI's board. In parallel, OpenAI has announced additional changes to its engagement with strategic partners and investors. Instead of the non-voting board seats, OpenAI plans to hold regular meetings with its stakeholders to gather feedback and collaborate on topics such as safety and security.
Despite the move to eliminate observer seats in OpenAI's board, Microsoft still owns 49% of OpenAI after investing $13 billion in the startup. This is still a relationship not easily reconstructed as exerting insignificant influence over the startup, and for this reason, it remains under investigation by the market authorities. It is a wise decision from both parties to attract more attention than is necessary, especially as the regulatory landscape continues to evolve.
