Microsoft quits OpenAI board seat as antitrust scrutiny of artificial intelligence pacts intensifies

Date:

Share post:


Microsoft has relinquished its seat on the board of OpenAI, saying its participation is no longer needed because the ChatGPT maker has improved its governance since being roiled by boardroom chaos last year.

In a Tuesday letter, Microsoft confirmed it was resigning, “effective immediately,” from its role as an observer on the artificial intelligence company’s board.

“We appreciate the support shown by OpenAI leadership and the OpenAI board as we made this decision,” the letter said.

The surprise departure comes amid intensifying scrutiny from antitrust regulators of the powerful AI partnership. Microsoft has reportedly invested $13 billion in OpenAI.

European Union regulators said last month that they would take a fresh look at the partnership under the 27-nation bloc’s antitrust rules, while the U.S. Federal Trade Commission and Britain’s competition watchdog have also been examining the pact.

Microsoft took the board seat following a power struggle in which OpenAI CEO Sam Altman was fired, then quickly reinstated, while the board members behind the ouster were pushed out.

“Over the past eight months we have witnessed significant progress by the newly formed board and are confident in the company’s direction,” Microsoft said 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.

It’s not hard to conclude that Microsoft’s decision to ditch the board seat was heavily influenced by rising scrutiny of big technology companies and their links with AI startups, said Alex Haffner, a competition partner at U.K. law firm Fladgate.

“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 said it would take a new approach to “informing and engaging key strategic partners” such as Microsoft and Apple and investors such as Thrive Capital and Khosla Ventures, with regular meetings to update stakeholders on progress and ensure stronger collaboration on safety and security.



Source link

Lisa Holden
Lisa Holden
Lisa Holden is a news writer for LinkDaddy News. She writes health, sport, tech, and more. Some of her favorite topics include the latest trends in fitness and wellness, the best ways to use technology to improve your life, and the latest developments in medical research.

Recent posts

Related articles

Troubled Boeing stays close to the ground at a major UK air show

LONDON -- European planemaker Airbus plans to show off its newest passenger jet with daily flight demonstrations...

EPA awards $4.3 billion to fund projects in 30 states to reduce climate pollution

WASHINGTON -- The Environmental Protection Agency is awarding $4.3 billion in grants to fund projects in 30...

Stock market today: Asian shares fall after Wall St ends worst week; Biden withdraw from 2024 race

Asian stocks were mostly lower Monday after President Joe Biden exited the 2024 race. The downbeat start...

China's central bank cuts interest rates, moving to put more pep into the economy

BANGKOK -- China’s central bank has cut both its five-year loan prime rate and its one-year rate,...

On a summer Sunday, Biden withdrew with a text statement. News outlets struggled for visuals

In an intensely visual news world, a seismic week of politics was transformed again in an instant...

Delta Air Lines says cancellations continue as it tries to restore operations after tech outage

Airlines, including Delta Air Lines, continued to struggle to restore operations two days after a faulty software...

Anti-whaling campaigner arrested in Greenland and police say he may be extradited to Japan

BERLIN -- Greenland police arrested a prominent environmental activist and anti-whaling campaigner on Sunday on an international...

Small businesses grapple with global tech outages created by CrowdStrike

NEW YORK -- An owner of a consumer insights research firm couldn't pay her employees, make Friday's...