As antitrust authorities increase their scrutiny of the artificial intelligence market, Microsoft has reportedly cancelled plans to take up an observer seat on the board of ChatGPT maker OpenAI, according to a letter obtained by AFP on Wednesday.<\/p>\n
The $13 billion partnership between Microsoft and OpenAI has sparked questions about Microsoft’s level of control over its smaller partner on both sides of the Atlantic.<\/p>\n
Regulators started looking into the relationship following an unsuccessful boardroom coup attempt against OpenAI CEO Sam Altman last year, who Microsoft had backed and briefly employed.<\/p>\n
Microsoft originally obtained a seat on the board as a non-voting observer, but it is now giving that position up in the wake of the turmoil in OpenAI. As per the letter, Microsoft has announced its withdrawal “effective immediately”.<\/p>\n
Microsoft sent a letter to OpenAI on Tuesday that stated, “Over the past eight months we have witnessed significant progress by the newly formed board and are confident in the company’s direction.”<\/p>\n
Our limited observer role is no longer necessary, in our opinion. After a preliminary investigation, the European Commission, the EU’s powerful antitrust regulator, concluded last month that Microsoft’s investment did not imply it had taken control of OpenAI.<\/p>\n
However, Microsoft still faced an investigation by British competition authorities regarding its observer seat on the board, and it might face an antitrust investigation in the US.<\/p>\n
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