2024-07-11 16:20:08
In a decision described as surprising, Microsoft announced that it would give up its observer seat on the board of directors of OpenAI, the company that developed ChatGPT.
“Over the past eight months, we have seen significant progress from the new board, and we are confident in the company’s trajectory,” Microsoft said in a letter to OpenAI on Tuesday. “We do not believe our limited oversight role is still necessary.”
OpenAI began to gain more attention in late 2022 after the release of its ChatGPT chatbot.
The company experienced a period of turmoil late last year, with the sudden dismissal of its CEO, Sam Altman, and then his reappointment as CEO, along with the formation of a new board of directors, according to the American Wall Street Journal.
Microsoft came in as a major partner, investing $13 billion in OpenAI for a 49 percent stake in the profits.
Microsoft’s role as a watchdog was part of that tie-up, an investment that is now facing antitrust scrutiny in the United States and Europe, the newspaper said.
Earlier this year, the US Federal Trade Commission opened a wide-ranging investigation into Microsoft’s investment in OpenAI, while the UK’s Competition and Markets Authority said it was looking into whether the partnership should be considered a de facto merger.
The EU is also scrutinizing the partnership to determine whether Microsoft has gained full control of OpenAI.
The European Union concluded last month that this was not the case, but pledged to continue monitoring the relationship between the two companies.
Microsoft has defended its partnership with OpenAI, saying it has fostered more innovation and competition in AI, while maintaining the independence of the two companies.
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2024-07-11 16:20:08