Microsoft has announced its decision to step down from its observer seat on the OpenAI board amidst growing regulatory scrutiny surrounding generative AI in both Europe and the U.S., CNBC reports.
In a letter sent to OpenAI on Tuesday, Keith Dolliver, Microsoft’s Deputy General Counsel, explained that while the observer seat had provided valuable insights into the board’s activities without compromising its independence, it was now deemed unnecessary.
The letter, as seen by CNBC, acknowledged the significant progress made by the newly formed board.
The European Commission had previously hinted at a potential antitrust investigation into Microsoft, particularly focusing on the virtual worlds and generative AI markets. In January, the Commission announced its examination of agreements between major digital market players and generative AI developers, with specific attention on the Microsoft-OpenAI partnership.
Although the EU concluded that Microsoft’s observer seat did not interfere with OpenAI’s independence, regulators are seeking additional third-party perspectives on the partnership. Meanwhile, the Competition and Markets Authority in Britain remains apprehensive.
Microsoft first acquired a nonvoting board seat at OpenAI in November to address concerns regarding its intentions with the startup, following a period of turmoil that resulted in the firing and swift reinstatement of OpenAI CEO Sam Altman.
Microsoft’s substantial investment in the ChatGPT creator reportedly amounts to $13 billion.