Microsoft Quits Observer Seat On OpenAI Board

Tech giant Microsoft has reportedly quit its observer seat on the OpenAI board. In a letter to OpenAI, seen by Axios, Microsoft said that the company has seen enough progress being made in Sam Altman's OpenAI and is confident in its direction. However, the crucial move comes as antitrust concerns over Microsoft’s deal with the ChatGPT creator have surged in recent months.

Microsoft took the non-voting observer position on OpenAI's board in November last year following a chaos in OpenAI in which CEO Sam Altman was fired, then quickly reinstated. In a letter, Microsoft also added that the observer role provided insights into the OpenAI board's activities without compromising its independence. "Given all of this we no longer believe our limited role as an observer is necessary," added Microsoft, as quoted by Axios.

The company also confirmed that it was resigning from the position “effective immediately.” Multiple reports indicate that Microsoft has made an investment of $13 billion in the San Francisco-based AI firm. In December 2023, the UK's competition watchdog started an initial review into Microsoft’s investment in OpenAI. It was the first major regulator to flag potential competition concerns over the partnership between Microsoft and OpenAI.