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Amid Regulatory Scrutiny, Microsoft Resigns from its Observer Seat on the OpenAI Board

With European and American regulators looking at generative artificial intelligence, Microsoft said that it would be leaving its observer position on the OpenAI board.

The post had given insights into the board’s operations without compromising its independence, a letter Microsoft’s Deputy General Counsel Keith Dolliver sent to OpenAI late on Tuesday.

However, as Microsoft had “witnessed significant progress from the newly formed board,” the letter—which CNBC was able to view—added that the position was no longer needed. CNBC has requested comments from OpenAI and Microsoft.

When it examined the markets for virtual worlds and generative artificial intelligence, the European Commission previously warned that Microsoft might be the subject of an antitrust probe.

In January, the EU’s executive body, the Commission, stated that it is “looking into some of the agreements that have been concluded between large digital market players and generative AI developers and providers.”

The Commission specifically mentioned the Microsoft-OpenAI partnership as one such agreement that it will be examining.

Source (CNBC)

SourceCNBC
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