Microsoft Steps Back from OpenAI Board Observer Role Amid Rising Global Antitrust Concerns - Metaverse Post
In Brief
In response to growing worries from antitrust regulators in both the U.S. and U.K., Microsoft has decided to forgo its role as an observer on the OpenAI board.
Technology company Microsoft The company has declared its intention to step away from its observer role at the AI research entity. OpenAI This decision comes in light of worries posed by antitrust watchdogs in both the U.S. and the U.K. regarding the influence Microsoft has over the organization.
As it stands, the U.S. Federal Trade Commission is conducting thorough antitrust evaluations focused on mergers involving tech and AI firms. Hence, Microsoft's action likely indicates that it recognizes the potential antitrust challenges and is taking steps to navigate them prudently.
When Sam Altman assumed oversight of OpenAI in November 2023, Microsoft was granted a non-voting observer role on the board. This position enabled them to take part in discussions and access confidential data but without the power to vote on significant decisions like selecting directors.
In the meantime, another tech firm known for its partnership with OpenAI has opted not to take an observer position on the board, defying general expectations. Apple OpenAI has stated firmly that it will not introduce opportunities for companies to fill any board observer roles moving forward. The organization also reinforced its dedication to adopting a new approach in interacting with stakeholders, which includes setting up regular meetings with its primary partners, Microsoft and Apple, alongside contributors like Thrive Capital and Khosla Ventures.
Regulators Are Wary of Microsoft's Dominance Over OpenAI
Microsoft's involvement has sparked scrutiny among regulators regarding the extent of power the corporation holds over
Although European Union antitrust regulators recently concluded that the partnership between Microsoft and OpenAI does not fall under their merger regulations—thanks to Microsoft's lack of control over OpenAI—they are still seeking external opinions specifically about the exclusivity terms of the agreement. OpenAI .
On the other hand, antitrust regulators in the United States and the United Kingdom are still concerned and are investigating the degree of influence Microsoft may have on OpenAI and whether the latter operates independently.
U.S. Federal Trade Commission
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