Written by Foo Yun Chee
BRUSSELS (Reuters) – In a move to address concerns from U.S. and UK antitrust regulators regarding its control over OpenAI, Microsoft has relinquished its board observer seat at the AI startup amidst the increasing popularity of generative artificial intelligence.
However, a source at the U.S. Federal Trade Commission stated that this change is unlikely to resolve the concerns raised by the agency, which is currently conducting an antitrust review of deals involving Big Tech firms and top AI companies.
The decision by Microsoft indicates that the company recognizes the potential antitrust risks and is proactively addressing them, according to the FTC source.
Microsoft did not respond to a request for comment on this matter.
On the other hand, Apple, which recently announced its integration of OpenAI’s ChatGPT chatbot into its devices, will not be taking an observer role on OpenAI’s board as previously anticipated.
An OpenAI spokesperson mentioned that the company plans to establish a new approach to engaging with stakeholders by holding regular meetings with strategic partners like Microsoft and Apple, as well as investors such as Thrive Capital and Khosla Ventures.
Microsoft had obtained a non-voting observer position on OpenAI’s board last November, allowing access to confidential information but without voting rights on crucial matters.
The decision to give up the observer seat comes after witnessing OpenAI’s progress under CEO Sam Altman’s leadership, leading Microsoft to believe that their limited role as an observer is no longer necessary.
While EU antitrust regulators have stated that the partnership between Microsoft and OpenAI is not subject to merger rules, concerns from British and U.S. regulators persist regarding Microsoft’s influence over OpenAI.
Microsoft’s move to remove the observer seat is seen as a strategic decision to mitigate antitrust concerns and demonstrate independence to regulators.
Both Microsoft and OpenAI are actively competing in the AI market to cater to enterprise customers, with Microsoft expanding its AI offerings on the Azure platform and making strategic hires to diversify beyond OpenAI.
