Microsoft has announced it is stepping down from an observer seat on OpenAI's board amid regulatory scrutiny over generative artificial intelligence in Europe and the US. Keith Dolliver, Microsoft's deputy general counsel, said the seat is no longer needed and Microsoft has seen significant progress with the newly formed board.
Microsoft has vacated the board observer position at OpenAI, saying it was no longer needed after the company's management improved significantly over the past eight months. On the other hand, an OpenAI spokesperson said the company will create a new approach by holding regular stakeholder meetings with strategic partners such as Microsoft and Apple and investors such as Thrive Capital and Khosla Ventures.
Last November, Microsoft took a non-voting "observer" seat on OpenAI's board, following a tumultuous period in which OpenAI CEO Sam Altman was fired and then quickly rehired. Thanks to this seat, Microsoft could participate in company meetings and access confidential information. However, they had no say in management decisions.
