Microsoft will no longer serve as an observer on the OpenAI board, despite a multi-billion dollar investment that gives the Redmond company a major financial stake in the for-profit entity of the artificial intelligence pioneer.
The decision, reported Wednesday morning, comes about eight months after Microsoft took on the role as part of the reformulated board after the short-lived ouster of OpenAI CEO Sam Altman.
It also comes amid heightened regulatory scrutiny of investments in AI companies by tech giants including Microsoft and Amazon. However, Reuters cites an unnamed Federal Trade Commission source saying that the change in Microsoft’s status was unlikely to resolve concerns about Microsoft’s partnership with OpenAI.
The Financial Times reported that Apple no longer plans to join the OpenAI board.
Axios quoted a letter from Microsoft to OpenAI explaining its decision.
“As you know, we accepted the non-voting board observer role at a time when OpenAI was in the process of rebuilding its board. This position provided insights into the board’s activities without compromising its independence, and we appreciated the opportunity to serve as an observer during this period of change.
“Over the past eight months we have witnessed significant progress from 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.”
An OpenAI spokesperson told The Verge, “We’re grateful to Microsoft for voicing confidence in the Board and the direction of the company, and we look forward to continuing our successful partnership. Under the leadership of CFO Sarah Friar, we are establishing a new approach to informing and engaging key strategic partners – such as Microsoft and Apple – and investors – such as Thrive Capital and Khosla Ventures.”
https://ift.tt/hJqIE74 July 10, 2024 at 04:32PM GeekWire
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