Microsoft quits Sam Altman's OpenAI board: ‘No longer necessary…’
In November last year, Microsoft took a non-voting, observer position on OpenAI's board after OpenAI CEO Sam Altman was reinstated in his position.
Microsoft left the board observer seat at OpenAI which has drawn regulatory scrutiny as the former said that it was not necessary as the AI start-up's governance has improved significantly in the past eight months. The Financial Times reported citing people in the know that Apple which was expected to take an observer role on OpenAI's board will not do so.
Read more: Broking firm Angel One faces massive data leak, data of 8 million users affected: Report
In November last year, Microsoft took a non-voting, observer position on OpenAI's board after OpenAI CEO Sam Altman was reinstated. Owing to the seat, Microsoft 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 US.
Read more: Stock market crash: Investors lose ₹7 lakh crore as Sensex tanks 1,000 points
Citing OpenAI's new partnerships, innovation and growing customer base since Altman's return to the startup for giving up its observer seat, Microsoft said, “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.”
