TECH - Microsoft Relinquishes Observer Role On OpenAI's Board Says It Is 'Confident' In Company's Direction Eight Months After Controversial 'Palace Coup' | Benzinga
Amid mounting regulatory scrutiny, Microsoft Corp. (NASDAQ:MSFT) has decided to relinquish its board observer position at OpenAI.
What Happened: Microsoft gave up its non-voting observer role on OpenAI’s board, a position it acquired in November 2023, following the controversial coup that saw the AI startup’s co-founder Sam Altman being fired and then brought back within days.
This move comes as OpenAI’s governance has reportedly improved, according to a Reuters report on Wednesday.
The observer seat allowed Microsoft to attend board meetings and access confidential information but did not grant voting rights on crucial matters, including the election of directors.
Microsoft’s decision to step down from the observer seat follows the company’s more than $10 billion investment in OpenAI, a move that has raised concerns among antitrust regulators in the U.S., Britain, and Europe over Microsoft’s level of control over OpenAI.
“Over the past eight months, we have witnessed ...