Microsoft says it's now 'confident' in OpenAI and the firm's 'significant progress' makes the seat unnecessary.
Microsoft said late Tuesday that it is giving up an observer seat on OpenAI's board, saying it has seen "significant progress" over the last eight months, is confident in the company's direction and no longer sees the seat as necessary.In a letter to OpenAI seen by Axios, Microsoft said it was confirming its decision to give up the seat, effective immediately — an indication that the move had already been discussed with the company.
"As you know, we accepted the non-voting board observer role at a time when OpenAI was in the process of rebuilding its board," Microsoft said in the letter. "This position provided insights into the board's activities without compromising its independence, and we appreciated the opportunity to serve as an observer during this period of change."
In giving up its observer seat, Microsoft removes a potential sticking point for antitrust regulators who could object to the giant's significant entanglement with OpenAI."We're grateful to Microsoft for voicing confidence in the Board and the direction of the company, and we look forward to continuing our successful partnership," OpenAI said in a statement to Axios.
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