Microsoft (NASDAQ:) has announced that it will give up its observer seat on OpenAI’s board of directors amid growing regulatory scrutiny of generative artificial intelligence in Europe and the United States, according to CNBC.
Keith Dolliver, Microsoft’s deputy general counsel, wrote to OpenAI on Tuesday, explaining that while the observer seat provided valuable insights into the board’s activities without compromising its independence, it was no longer necessary.
The letter, seen by CNBC, noted that Microsoft had “seen significant progress from the newly formed board.”
The European Commission had previously indicated that Microsoft could face an antitrust investigation, focusing on the markets for virtual worlds and generative AI. In January, the commission, the EU’s executive arm, said it was examining agreements between major digital market players and generative AI developers, highlighting the Microsoft-OpenAI partnership in particular.
Although the EU concluded that Microsoft’s observer seat did not affect OpenAI’s independence, regulators are seeking additional third-party opinions on the partnership. Meanwhile, the UK’s Competition and Markets Authority remains concerned.
Microsoft initially took a non-voting seat on OpenAI’s board in November to address questions about its intentions with the startup, after a period of turmoil that saw OpenAI CEO Sam Altman ousted and then quickly reappointed.
Microsoft has invested heavily in the company that makes ChatGPT, with its total investment reaching $13 billion.
