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Microsoft ditches OpenAI board observer seat amid regulatory scrutiny

Economic Times

Economic Times · 1y ago

Microsoft ditches OpenAI board observer seat amid regulatory scrutiny

Microsoft has decided to relinquish its board observer seat at OpenAI, citing improvements in the AI start-up's governance. Apple, which was also expected to take an observer role, declined to do so. The observer seat and Microsoft's investment in OpenAI have raised concerns among antitrust regulators. Microsoft's move is seen as an attempt to address these concerns and demonstrate independence. However, there are still questions about Microsoft's influence over OpenAI and the latter's independence. Both companies are competing in the enterprise AI market, with Microsoft expanding its AI offerings on the Azure platform.

Related News

Microsoft exec Templeton joins OpenAI board after overhaul: Report

Inshorts · 1y ago

Microsoft exec Templeton joins OpenAI board after overhaul: Report

Microsoft Vice President (Tech and Research Partnerships and Operations) Dee (Deannah) Templeton has joined OpenAI's board as an observer after the board was overhauled following CEO Sam Altman's abrupt ouster and rejoining, Bloomberg reported. Templeton has already begun attending board meetings. Microsoft didn't have a seat at board of OpenAI, which it is an investor of, before the overhaul.

Sam Altman reacts after officially returning as OpenAI CEO

Livemint

Livemint · 1y ago

Sam Altman reacts after officially returning as OpenAI CEO

Sam Altman has officially returned as CEO of OpenAI, along with Greg Brockman as president and Mira Murati as CTO. Altman expressed excitement and gratitude for the team's resilience during the uncertain period and thanked co-founder Ilya Sutskever. Microsoft, OpenAI's biggest backer, will now have a non-voting observer seat on the company's board. Altman acknowledged the successful partnership with Microsoft and expressed enthusiasm for their inclusion on the board.

Microsoft, other investors unlikely to get a seat on new OpenAI board

Livemint

Livemint · 1y ago

Microsoft, other investors unlikely to get a seat on new OpenAI board

OpenAI is unlikely to offer a board seat to Microsoft and other investors, despite Microsoft being the biggest backer of OpenAI. Although Microsoft has invested over $10 billion and holds a 49% stake in the company, OpenAI's unusual governance structure limits Microsoft's influence. OpenAI recently went through a CEO change, rehiring Sam Altman, but did not grant him a seat on the board. Experts suggest that OpenAI's decision to prioritize security practices over investor returns may lead to Microsoft being excluded from the board.

Sam Altman’s new order doesn’t include OpenAI’s chief scientist

Gizmodo

Gizmodo · 1y ago

Sam Altman’s new order doesn’t include OpenAI’s chief scientist

Sam Altman has returned as CEO of OpenAI, along with his party members Greg Brockman as President and Mira Murati as CTO. However, Ilya Sutskever, co-founder and former chairman of OpenAI, has not returned yet and his position is yet to be determined. Altman mentions his respect and working relationship with Sutskever, but it is unclear why Sutskever did not return to his position. OpenAI's new board comprises of Quora CEO Adam D'Angelo, former Salesforce CEO Bret Taylor, and former US Treasury Secretary Larry Summers. Microsoft will also have a non-voting observer seat on the board to maintain communication with the CEO.

We don't own any part of OpenAI: Microsoft on UK regulator's probe

Inshorts · 1y ago

We don't own any part of OpenAI: Microsoft on UK regulator's probe

Microsoft doesn't own any portion of OpenAI and is only entitled to a profit share, a spokesperson said. This comes after UK's antitrust regulator said it'll review Microsoft and OpenAI's partnership. Microsoft President Brad Smith further said the only thing that changed following OpenAI CEO Sam Altman's return is that "Microsoft will now have a non-voting observer on OpenAI's board".

OpenAI to name new board members in March: report

Economic Times

Economic Times · 1y ago

OpenAI to name new board members in March: report

OpenAI, the chatbot creator backed by Microsoft, plans to add new board members in March to resolve an ongoing dispute within the company. Former CEO Sam Altman was fired by the board in November but quickly returned shortly after. The new board, led by chair Bret Taylor, is actively searching for six members with expertise in technology, safety, and policy. Microsoft will hold a non-voting, observer position, while OpenAI investors are unlikely to get board seats. The U.S. Securities and Exchange Commission is examining internal communications related to Altman as part of an investigation into potential investor deception.

Microsoft needs a better seat at OpenAI’s table

Livemint

Livemint · 1y ago

Microsoft needs a better seat at OpenAI’s table

Microsoft played a strategic move in the OpenAI drama but now faces the challenge of solidifying its relationship with the startup while also asserting its own path in the field of artificial intelligence. Despite Wall Street's approval of Microsoft CEO Satya Nadella's handling of the situation, the AI strategy's vulnerability was exposed. Microsoft's close partnership with OpenAI gave it an advantage in generative AI, but without any board seat or power, Microsoft needs OpenAI to thrive. However, there is a risk of overreliance on OpenAI, prompting Microsoft to start hedging its perceived dependence.

Inside Microsoft’s complicated relationship with OpenAI

The Verge

The Verge · 2m ago

Inside Microsoft’s complicated relationship with OpenAI

Cracks are appearing in the Microsoft-OpenAI partnership, a result of OpenAI's growing need for more compute power and desire to reduce dependence on Microsoft. Tensions have heightened around OpenAI's potential acquisition of AI coding tool Windsurf, which it wants exempt from Microsoft's contract. This discord might lead OpenAI to accuse Microsoft of anticompetitive behavior, prompting further regulatory scrutiny, as Microsoft's $13 billion AI investment and partnership terms with OpenAI face potential antitrust violations investigation.

Microsoft ends weekend of OpenAI drama with coup of its own

Economic Times

Economic Times · 1y ago

Microsoft ends weekend of OpenAI drama with coup of its own

In a weekend full of drama, Microsoft made a move of its own by hiring Sam Altman, the ousted chief of OpenAI. Altman was abruptly fired by OpenAI's board, leading to a campaign to reinstate him. Microsoft CEO Satya Nadella recruited Altman and another OpenAI co-founder to lead a new in-house AI research unit. This move reshapes the AI landscape as OpenAI's popular ChatGPT app and Altman's role were crucial in driving AI advancements. OpenAI now faces potential employee exodus and scrutiny over its ability to monetize its AI technology.

Worldcoin Paris office checked by French data watchdog

Economic Times

Economic Times · 1y ago

Worldcoin Paris office checked by French data watchdog

France's data watchdog, CNIL, conducted an inspection of WorldCoin's Paris office this week amid regulatory scrutiny on the digital currency company co-founded by Sam Altman, also a co-founder of OpenAI. CNIL previously raised concerns about the legality of WorldCoin's biometric data practices. WorldCoin requires users to provide iris scans for a digital ID and cryptocurrency. The WorldCoin Foundation stated that it's committed to privacy and regulatory requirements. The foundation is associated with the WorldCoin protocol and Altman is known for his role in creating ChatGPT and OpenAI.

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