Microsoft's shock exit from OpenAI

Eight months after joining OpenAI’s board, in an observatory, non-voting position, Microsoft has abruptly quit.

To explain their decision, in a letter to OpenAI, Microsoft states that they “have witnessed significant progress by the newly formed board and are confident in the company's direction” (which includes its commitment to safety and building a “great culture”), and believe, therefore, that their role as an observer is no longer needed.

While this could be a perfectly feasible explanation for its quick exit, reports say that the real reason Microsoft has left OpenAI’s board is to avoid further scrutiny from UK, US, and EU competition and antitrust regulators, who have been examining Microsoft’s $13B partnership with OpenAI since 2019, questioning its consequential marketplace domination, and whether it's preventing fair competition within the industry.

Regardless of the reason, OpenAI is grateful for Microsoft's newly found confidence in their new board and company direction and doesn’t plan to appoint any more observer seats on the board. This squashes last month’s rumors about Apple’s Phil Schiller taking on the non-voting seat, alongside Microsoft, with OpenAI claiming they will now focus on building and nurturing strategic stakeholder relationships, instead.

“Moving forward, we will host regular stakeholder meetings to share progress on our mission and ensure stronger collaboration across safety and security. We look forward to continuing to receive feedback and advice from these key stakeholders.”

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