Microsoft’s Decision Regarding OpenAI
Microsoft has decided to step down from its nonvoting position on OpenAI’s board, a position it acquired late last year. This move comes as regulators are increasing their scrutiny of the relationship between the tech giant and the startup known for developing the popular chatbot ChatGPT.
In a letter sent on Tuesday, Microsoft informed OpenAI about its decision. Despite relinquishing its board position, Microsoft remains the largest investor in OpenAI, holding a 49% stake. The company has committed to investing $13 billion in OpenAI, the company behind ChatGPT, known for its capabilities in answering questions, generating images, and writing software code.
OpenAI has also announced plans to hold quarterly meetings with key investors and business partners, including Microsoft, Khosla Ventures, Thrive Capital, and Apple, which recently reached an agreement to make ChatGPT accessible on iPhones later this year.
Microsoft had joined OpenAI’s board as a nonvoting observer last year, following the reinstatement of Sam Altman as OpenAI’s CEO. Since then, OpenAI has restructured its board, appointing four new directors.
In the letter to OpenAI, Keith Dolliver, Microsoft’s corporate secretary, stated that the company no longer saw the need for its board role as it had observed significant progress under the new board’s leadership and was confident in the company’s direction.
Microsoft’s decision coincides with regulatory scrutiny in both Europe and the U.S. regarding its relationship with OpenAI. The European Commission has raised concerns about potential antitrust issues related to investments in AI startups by major tech companies, including Microsoft. Meanwhile, the Federal Trade Commission in the U.S. has initiated an investigation into the Microsoft-OpenAI partnership to ensure compliance with regulatory standards.
Over the years, Microsoft has opted for cooperation with regulators rather than confrontation. For instance, the company successfully navigated the regulatory landscape to acquire Activision Blizzard by making concessions such as offering games on competitor consoles and licensing games to other publishers.
Reporting by Karen Weise contributed to this article.
