Antitrust scrutiny has Microsoft ditching its OpenAI board observer seat

This move signals a shift in the strategy of these tech giants as they grapple with the demanding landscape of AI supremacy, whilst simultaneously under the magnifying glass of regulators. However, this step may not go far enough to assuage the concerns of the U.S. Federal Trade Commission (FTC), who are currently examining deals between Big Tech and leading AI brands for any antitrust implications. 

A spokesperson from OpenAI reassured that a new approach to stakeholder engagement is in the pipeline, involving regular meetings with strategic partners, including Microsoft and Apple, as well as eager investors such as Thrive Capital and Khosla Ventures. 

Despite withdrawing from the board, Microsoft plans to maintain its close relationship with OpenAI by participating in regular meetings. The tech giant originally acquired a non-voting observer position on the board of  OpenAI in November.  

This allowed them access to confidential data, but no voting privileges. As watchdogs continue to question the influence of Microsoft over OpenAI, the two companies are competing to sell AI technology. 

Microsoft is also bolstering its AI range on the Azure platform and has recently appointed Inflection’s CEO to lead its consumer AI division, seeking to diversify from OpenAI.

- CyberBeat