Microsoft (MSFT.O) has given up its board observer seat at OpenAI, which had drawn regulatory scrutiny. This decision follows significant improvements in OpenAI’s governance over the past eight months. Apple (AAPL.O) was also expected to take an observer role but decided against it, according to the Financial Times.
Microsoft’s observer seat allowed attendance at board meetings without voting rights, raising concerns among antitrust regulators in Europe, the UK, and the US about Microsoft’s influence over OpenAI. Microsoft’s $10 billion investment in OpenAI had heightened these concerns.
In a letter dated July 9, Microsoft cited OpenAI’s progress, new partnerships, innovation, and growing customer base as reasons for giving up the seat. EU regulators stated the partnership wouldn’t fall under merger rules but would review exclusivity clauses. UK and US regulators continue to question Microsoft’s influence.
Both companies aim to demonstrate their independence while expanding AI technology offerings, with Microsoft also diversifying its AI efforts beyond OpenAI.
