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Microsoft She said she would give up her seat as an observer on the OpenAI board amid regulatory scrutiny of generative AI in Europe and the US.
Keith Dolliver, Microsoft's deputy general counsel, wrote to OpenAI late Tuesday, saying the position provided insights into the board's activities without compromising its independence.
But the letter, seen by CNBC, added that the seat is no longer needed as Microsoft has seen “significant progress from the newly formed board.” CNBC has reached out to Microsoft and OpenAI for comment.
The European Commission said earlier that Microsoft could face an antitrust investigation as it looked into the markets for virtual worlds and generative artificial intelligence.
The Commission, the EU’s executive arm, said in January it was “looking at some agreements concluded between major players in the digital market and developers and providers of generative AI” and singled out the Microsoft-OpenAI agreement as a particular deal to be examined.
The EU has since concluded that the observer seat did not alter OpenAI’s independence, but EU regulators are seeking additional third-party opinions on the deal. The UK Competition and Markets Authority still has concerns.
Microsoft took a non-voting seat on OpenAI's board last November in an attempt to allay some questions about Microsoft's interest in the startup, after a tumultuous period in which OpenAI CEO Sam Altman was fired and then immediately reappointed.
OpenAI “clearly made the right choice to partner with Microsoft and I’m excited that our new board will include them as a non-voting observer,” Altman said in a memo to employees at the time.
OpenAI emerged as one of the world's most popular startups after launching its ChatGPT chatbot in late 2022. The technology allows users to enter simple text queries and retrieve intelligent, creative answers that can lead to deeper conversations.
Microsoft has invested billions of dollars in the startup, with its total investment to date totaling $13 billion. The tech giant has become a leader in pushing for core AI models due to its investments and partnership with OpenAI.
