Microsoft Steps Away From OpenAI’s Board

Microsoft has decided to step away from OpenAI’s Board, giving up its non-voting seat amid regulatory scrutiny in the US, UK, and EU.

Microsoft joined the OpenAI Board of Directors in November, following the upheaval in OpenAI’s leadership that saw Sam Altman briefly removed from his position as CEO.

The observation-only seat allowed Microsoft to join board meetings and gain access to confidential information regarding the inner workings of OpenAI. Still, Microsoft did not have the power to vote or influence board decisions, such as taking on new board members.

Microsoft said in a letter that “over the past eight months, we have witnessed significant progress by the newly formed board and are confident in the company’s direction. Given all of this we no longer believe our limited role as an observer is necessary.”

While that may be true, Microsoft is also likely trying to remove any perception of unfair influence or control over OpenAI. The US, UK, and EU are all taking a greater interest in the various partnerships between big tech companies concerning AI development, which is part of a renewed interest in antitrust policy.

Three weeks after Microsoft left OpenAI’s board, the European Commission, US Federal Trade Commission, US Department of Justice, and UK Competition and Markets Authority released a joint statement regarding their shared commitment to ensure the development of AI takes place in a fair and competitive market.

The statement says that “firms with existing market power in digital markets could entrench or extend that power in adjacent AI markets or across ecosystems, taking advantage of feedback and network effects to increase barriers to entry and harm competition,” going on to declare that “we are committed to using our available powers to address any such risks before they become entrenched or irreversible harms.”

The European Commission has already reviewed Microsoft’s partnership with OpenAI and found it did not violate any EU merger rules. However, the commission is still investigating whether the partnership impacted competition in the EU.