Microsoft is giving up its observer-status seat on the board of OpenAI in a move designed to ease concerns about the growing control of Big Tech on AI technology.
Microsoft, which has invested US$13 billion ($19.25 billion) into OpenAI, is under scrutiny from antitrust authorities in the EU and US over its partnership with OpenAI and concerns about competition in the sector.
Apple, which struck a deal with OpenAI to integrate ChatGPT into its devices operating systems, had also been tipped to join the OpenAI board but is giving it a wide berth.
Instead, Microsoft, Apple and other key partners will regularly meet up with the start-up to receive updates of its progress.
Big Tech companies are in battle to lead the generative AI arms race. To date, OpenAI has used billions of dollars worth of Microsoft’s storage and computing power, and Microsoft’s CEO Satya Nadella was a key figure in OpenAI’s leadership tussle last November that saw OpenAI boss Sam Altman removed by the OpenAI board, and then rehired days later.
Microsoft’s close partnership with OpenAI has allowed it to take a lead role in the GenAI sector.
Microsoft cited Altman’s return to OpenAI in driving new partnerships, innovation and a growing customer base as reasons for giving up its observer seat.
“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,” the letter said.
The US Federal Trade Commission and the European Commission have begun scrutinising the influence of Big Tech in the fledgling but rapidly growing GenAI sector with concerns too few companies could control technology that some believe could be as transformative as the Industrial Revolution.
An FTC source told the Financial Times that Microsoft leaving the OpenAi board was unlikely to resolve its concerns.
