Microsoft has relinquished a board observer seat at OpenAI that drew regulatory scrutiny on both sides of the Atlantic, saying it was unnecessary after the AI startup’s governance improved significantly in the past eight months.
Apple, which last month announced it was bringing OpenAI’s ChatGPT chatbot to its devices, will not take an observer role on OpenAI’s board after it was widely expected to do so, the Financial Times reported, citing a person with direct knowledge of the matter. Apple did not respond to a request for comment.
An OpenAI spokesperson said the company will create a new approach to engagement by hosting regular stakeholder meetings with strategic partners like Microsoft and Apple and investors like Thrive Capital and Khosla Ventures.
Microsoft took a non-voting, observer position on OpenAI’s board in November of last year after OpenAI CEO Sam Altman took the reins at the company that runs the AI-generating chatbot ChatGPT.
This seat meant he could attend OpenAI board meetings and have access to confidential information but did not have voting rights on matters including the election or selection of directors.
The observer seat and Microsoft’s more than $10 billion investment in OpenAI have raised concerns among antitrust authorities in Europe, Britain and the United States about how much control it exercises over OpenAI.
Microsoft cited OpenAI’s new partnerships, innovation, and growing customer base since Altman returned to the startup to step down from her observer seat.
“Over the past eight months, we have seen significant progress from our newly formed board and are confident in the direction of the company. In light of all of this, we no longer believe our limited role as an observer is necessary,” the company said in a July 9 letter to OpenAI.
EU antitrust authorities said last month that the partnership would not be subject to the bloc’s merger rules because Microsoft does not control OpenAI, but would instead seek third-party opinions on the exclusivity provisions in the agreement.
In contrast, British and US antitrust authorities remain concerned and questions remain about Microsoft’s influence over OpenAI and the latter’s independence.
Microsoft and OpenAI are increasingly competing to sell AI technology to enterprise customers, aiming to generate revenue and demonstrate their independence to regulators to address antitrust concerns.
Additionally, Microsoft is expanding its AI offerings on the Azure platform and has appointed the CEO of Inflection to head its consumer AI division, a move widely interpreted as an effort to diversify beyond OpenAI.
—Fu Yunqi, Reuters
Source link
