Power concerns: The Microsoft headquarters in Redmond, Washington. The company’s observer seat and more than US$10bil investment in OpenAI have triggered unease among antitrust watchdogs over how much control it exerts over OpenAI. — AFP
BRUSSELS: Microsoft has given up its board observer seat at OpenAI in a move aimed at easing US and UK antitrust regulators’ concerns about the extent of its control over the artificial intelligence (AI) startup amid the soaring popularity of generative AI.
But the change was unlikely to resolve concerns by the US Federal Trade Commission (FTC), a source at the agency said.
The FTC is conducting an antitrust review of deals by Big Tech firms and top AI companies.
The move shows Microsoft sees significant potential antitrust exposure and is trying to get ahead of it, the FTC source said.
A spokesperson for Microsoft did not immediately reply to a request for comment on Wednesday.
Meanwhile, Apple, which said last month it was bringing OpenAI’s chatbot, ChatGPT, to its devices, will not take an observer role on OpenAI’s board after being widely expected to do so, according to a person with direct knowledge of the matter.
The person added that OpenAI has no future plans to offer any board observer roles. Apple did not respond to a request for comment.
An OpenAI spokesperson said the company would establish a new approach to engaging with stakeholders by hosting regular meetings with strategic partners such as Microsoft and Apple, and investors such as Thrive Capital and Khosla Ventures.
Microsoft took a non-voting, observer position on OpenAI’s board in November after OpenAI chief executive officer Sam Altman took back the reins of the company.
The seat meant Microsoft could attend OpenAI’s board meetings and access confidential information but had no voting rights on matters including electing or choosing directors.
The observer seat and Microsoft’s more than US$10bil investment in OpenAI have triggered unease among antitrust watchdogs in the European Union, Britain and the United States over how much control it exerts over OpenAI.
The position provided insights into the board’s work without compromising its independence, Microsoft said in a letter to OpenAI dated July 9.
It cited OpenAI’s new partnerships, innovation and growing customer base since Altman’s return to the startup as reasons for giving up its observer seat.
“Over the past eight months we have witnessed significant progress by 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,” it said in the letter. — Reuters
