Stock Market News

Microsoft ditches OpenAI board observer seat amid regulatory scrutiny

2024.07.10 01:10

By Foo Yun Chee

BRUSSELS (Reuters) – Microsoft (NASDAQ:) has ditched its board observer seat at OpenAI that has drawn regulatory scrutiny on both sides of the Atlantic, saying it was not necessary after the AI start-up’s governance had improved significantly in the past eight months.

The U.S. tech giant took a non-voting, observer position on OpenAI’s board in November last year after OpenAI CEO Sam Altman took back the reins of the company which operates the viral generative AI chatbot ChatGPT.

The seat meant it 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 $10 billion investment in OpenAI have triggered unease among antitrust watchdogs in Europe, Britain and the U.S. over how much control it exerts over OpenAI.

Microsoft cited OpenAI’s new partnerships, innovation and growing customer base since Altman’s return to the startup 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 a letter to OpenAI dated July 9.

EU antitrust regulators last month said the partnership would not be subjected to the bloc’s merger rules because Microsoft does not control OpenAI, but they would instead seek third-party views on the exclusivity clauses in the agreement.

In contrast, the UK and U.S. antitrust watchdogs continue to have concerns as well as questions about Microsoft’s influence over OpenAI and the latter’s independence.

© Reuters. FILE PHOTO: A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, March 25, 2024. REUTERS/Gonzalo Fuentes/File Photo

Microsoft and OpenAI are increasingly competing to sell AI technology to enterprise customers, aiming to generate revenue and demonstrate their independence to regulators to address antitrust concerns.

Additionally, Microsoft is expanding its AI offerings on the Azure platform and has hired Inflection’s CEO to head its consumer AI division, a move widely interpreted as an effort to diversify beyond OpenAI.



Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 64,695.33 1.85%
ethereum
Ethereum (ETH) $ 3,461.15 1.82%
tether
Tether (USDT) $ 1.00 0.00%
bnb
BNB (BNB) $ 577.23 0.26%
solana
Solana (SOL) $ 161.71 4.42%
usd-coin
USDC (USDC) $ 1.00 0.03%
staked-ether
Lido Staked Ether (STETH) $ 3,462.45 1.95%
xrp
XRP (XRP) $ 0.582149 8.88%
the-open-network
Toncoin (TON) $ 7.36 1.67%
dogecoin
Dogecoin (DOGE) $ 0.126004 4.61%
cardano
Cardano (ADA) $ 0.444375 1.84%
tron
TRON (TRX) $ 0.134282 2.90%
avalanche-2
Avalanche (AVAX) $ 29.02 7.36%
shiba-inu
Shiba Inu (SHIB) $ 0.00002 6.23%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 64,644.32 1.81%
polkadot
Polkadot (DOT) $ 6.41 0.49%
chainlink
Chainlink (LINK) $ 14.46 3.35%
bitcoin-cash
Bitcoin Cash (BCH) $ 392.54 1.55%
near
NEAR Protocol (NEAR) $ 6.18 10.11%
uniswap
Uniswap (UNI) $ 8.22 2.23%
litecoin
Litecoin (LTC) $ 72.99 3.18%
leo-token
LEO Token (LEO) $ 5.86 0.30%
dai
Dai (DAI) $ 0.999629 0.06%
pepe
Pepe (PEPE) $ 0.000012 20.78%
matic-network
Polygon (MATIC) $ 0.549619 2.57%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,605.21 1.93%
internet-computer
Internet Computer (ICP) $ 9.51 0.66%
kaspa
Kaspa (KAS) $ 0.18065 0.30%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.44 8.33%
ethereum-classic
Ethereum Classic (ETC) $ 23.71 2.65%
ethena-usde
Ethena USDe (USDE) $ 0.99941 0.19%
aptos
Aptos (APT) $ 7.10 6.00%
stellar
Stellar (XLM) $ 0.107415 3.95%
monero
Monero (XMR) $ 161.59 1.90%
blockstack
Stacks (STX) $ 1.91 1.85%
hedera-hashgraph
Hedera (HBAR) $ 0.077484 1.82%
maker
Maker (MKR) $ 2,930.78 0.76%
filecoin
Filecoin (FIL) $ 4.57 6.36%
render-token
Render (RNDR) $ 6.59 1.94%
vechain
VeChain (VET) $ 0.031861 1.31%
cosmos
Cosmos Hub (ATOM) $ 6.60 4.41%
okb
OKB (OKB) $ 42.89 3.53%
crypto-com-chain
Cronos (CRO) $ 0.095004 0.31%
mantle
Mantle (MNT) $ 0.775708 1.54%
arbitrum
Arbitrum (ARB) $ 0.76597 4.02%
injective-protocol
Injective (INJ) $ 24.37 9.77%
immutable-x
Immutable (IMX) $ 1.51 1.43%
dogwifcoin
dogwifhat (WIF) $ 2.21 15.14%
sui
Sui (SUI) $ 0.875919 7.52%
bittensor
Bittensor (TAO) $ 300.59 0.29%