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By Theo Burman
Live News Reporter
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Microsoft has given up its seat on Sam Altman's OpenAI board, effective immediately, the company said.
Microsoft, which has invested $13 billion into Sam Altman's most well-known company, said that its observer role was "no longer necessary" in a letter sent to OpenAI and seen by the Financial Times. Microsoft had accepted the non-voting board position in the wake of Altman's surprise removal and reinstatement as CEO of OpenAI last year.
The news comes after European and American antitrust authorities announced investigations into the partnership between the two tech companies. The Federal Trade Commission and the Justice Department both approved potential antitrust examinations due to the growth of artificial intelligence as a significant industry.
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Microsoft's partnership with OpenAI, which was co-founded by Altman, Elon Musk and several other tech visionaries, was a significant part in the fledgling company's ability to grow and develop ChatGPT. Among other things, the investment enabled OpenAI quick access to high-level computing power and cloud storage.
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The FT reported that in the letter, Microsoft Deputy General Counsel Keith Dolliver said: "This position provided insights into the board's activities without compromising its independence. We have witnessed significant progress from the newly formed board and are confident in the company's direction."
Dolliver maintained that OpenAI remained one of Microsoft's "most valued partners" in the artificial intelligence space.
In response to the letter, a spokesperson for OpenAI told the FT: "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."
Microsoft gained the observational position on the board after Altman was removed as CEO in a coup in November last year, only to be reinstated less than a week later. At the time, the board said that they had lost confidence in Altman's leadership, due to a lack of communication.
Microsoft immediately hired Altman, along with OpenAI president Greg Brockman, to lead a new AI research lab. More than 700 OpenAI employees signed a letter threatening to quit and join the new Microsoft venture, pressuring the board to agree to Altman's return a few days later.
In the following days, Microsoft executive Dee Templeton was added to the OpenAI board, a seat which the company has retained until now.
The Financial Times reported that Apple, which recently announced a new partnership with OpenAI, would not be taking a similar observer role on the board despite previous expectations to do so.
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