Microsoft on Tuesday stepped down from its observer role on OpenAI’s board of directors amid increased scrutiny of the partnership between the two tech giants from antitrust regulators in the United States and Europe.
Microsoft sent a letter to the artificial intelligence company that develops ChatGPT on Tuesday saying it was relinquishing its “immediate” observer status.
“We appreciate the support shown by OpenAI’s leadership and board of directors in making this decision,” Microsoft said in the letter.
Microsoft said it believes OpenAI’s governance has improved significantly since a tumultuous board shakeup last year and that its presence on the board is no longer necessary.
After OpenAI CEO Sam Altman was fired by its board last year, Microsoft helped reinstate him, reinstating Altman as chief executive officer, ousting dissenting directors and giving Microsoft an observer seat.
“Over the past eight months, we have seen great progress by the newly formed board and are confident in the direction of the company,” Microsoft said in the letter. “Given all of this, we believe our limited observer role is no longer necessary.”
The surprise departure comes as regulators step up efforts to crack down on a powerful alliance between the two AI companies: Microsoft has invested $13 billion in Altman’s OpenAI, the Associated Press reported. report.
Antitrust regulators at the Federal Trade Commission (FTC) are investigating OpenAI and Microsoft’s roles in the burgeoning AI industry.
The Biden administration Called for stricter regulations AI industry leaders are wary that top tech companies could monopolize the rapidly developing technology.
The FTC launched a similar investigation in January into investments by Microsoft, Amazon, and Google in OpenAI and AI startup Anthropic.
FTC Chairman Lina Khan said at the time that the agency would scrutinize transactions that “allow a dominant company to exercise improper influence or gain privileged access in a way that undermines fair competition.”
The Associated Press contributed.
