Microsoft Steps Down from OpenAI Board Amid Governance Improvements
Microsoft has announced its decision to relinquish its observer seat on the board of OpenAI, citing the AI company’s significant governance improvements since the tumultuous events of last year.
In a letter issued on Tuesday, Microsoft confirmed its immediate resignation, expressing gratitude for the support received from OpenAI leadership and the board throughout the decision-making process.
This unexpected departure comes amidst heightened scrutiny from antitrust regulators regarding the influential AI partnership, with Microsoft having reportedly invested $13 billion in OpenAI. European Union regulators recently announced a reevaluation of the partnership under the bloc’s antitrust rules, while British competition authorities have also been investigating the matter.
Microsoft initially assumed the board seat following internal turmoil at OpenAI, including the firing and subsequent reinstatement of CEO Sam Altman, alongside changes in board composition.
“Over the past eight months, we have observed substantial progress under the new board’s leadership and are confident in the company’s current trajectory,” Microsoft stated in its letter. “Considering these developments, we believe our role as an observer is no longer necessary.”
Following Microsoft’s withdrawal, OpenAI will no longer maintain observer seats on its board.
“We appreciate Microsoft’s confidence in the board and our strategic direction, and we anticipate continuing our successful collaboration,” OpenAI responded in a statement.
According to Alex Haffner, a competition partner at Fladgate, Microsoft’s decision likely reflects growing regulatory scrutiny surrounding tech giants’ relationships with AI startups and the need for careful structuring of such arrangements.
OpenAI has committed to a new approach of engaging and updating key partners like Microsoft and Apple, as well as investors such as Thrive Capital and Khosla Ventures, through regular meetings aimed at enhancing collaboration on safety and security measures.
