Microsoft abandons plan to join OpenAI board due to regulatory scrutiny

The computer giant Microsoft has abandoned plans to take an observer seat on the board of OpenAI (the firm responsible for developing ChatGPT), according to a letter seen by AFP on Wednesday.

“Over the past eight months we have seen significant progress from the newly appointed Board of Directors, and we are confident in the direction of the company,” Microsoft said in its letter to OpenAI.

“We no longer believe that our limited role as an observer is necessary.“Microsoft said in the document.

“OpenAI remains one of Microsoft’s most valued partners, and the work it is doing for society and customers has never been more important,” the company said in its letter.

According to the document, the decision not to sit on OpenAI’s board “has immediate effect”.

Microsoft’s alliance with OpenAI, which concluded investments of around 13 billion dollars, had generated intense concern in the EUwhere regulatory bodies have launched an investigation into its potential impacts.

The European Commission, the EU’s executive arm and its antitrust regulator, concluded in June at the end of a preliminary examination that Microsoft’s investment did not mean it had taken control of OpenAI.

However, the investigations continued, focusing on Microsoft’s seat as an observer on OpenAI’s board.

The launch of ChatGPT in November 2022 marked an explosive popularity of generative artificial intelligence devices.

At the time, the Commission was busy designing a set of rules to regulate the use of artificial intelligence in the bloc, but the popularity of ChatGPT and similar devices forced a complete review of the planned measures.

The Commission is now awaiting further information from Microsoft on the OpenAI deal to determine whether “certain exclusivity clauses could have a negative effect on competition,” said European Competition Commissioner Margrethe Vestager on 28 June.

By Editor

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