Microsoft Steps Back from OpenAI's Board Amid Antitrust Scrutiny

Microsoft has opted to relinquish its observer seat on OpenAI's board to alleviate concerns from U.S. and UK antitrust regulators. The decision follows the rising popularity of generative AI and aims to address regulatory apprehensions about Microsoft's influence over OpenAI. Despite Microsoft’s $10 billion investment in OpenAI, the company emphasized continued collaboration while maintaining OpenAI's independence.

In a strategic move to address regulatory concerns, Microsoft has relinquished its observer seat on OpenAI's board. This decision comes as U.S. and UK antitrust regulators scrutinize Microsoft's influence over the fast-growing AI startup.

Microsoft's observer role, which provided non-voting access to confidential board discussions, was seen as a potential control mechanism by watchdogs despite the firm's significant investment in OpenAI. The position was initially taken up in November after OpenAI CEO Sam Altman resumed leadership.

In a letter dated July 9, Microsoft cited OpenAI's recent successes and growing customer base as reasons for stepping back, asserting confidence in the startup's direction. This move may soften regulatory pressures and highlight OpenAI's independence.

(With inputs from agencies.)