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Microsoft leaves OpenAI board to avoid regulatory scrutiny #tech

Microsoft exits OpenAI's boardroom to sidestep regulatory scrutiny • The Register

Microsoft is giving up its non-voting observer seat on OpenAI’s board, citing progress in the company’s direction but also likely influenced by regulatory scrutiny. The decision to take the seat followed chaos at OpenAI last year, and Microsoft’s relationship with OpenAI has faced scrutiny from regulators in both Europe and the US. The European Commission cleared Microsoft of exerting control over OpenAI, but concerns remain about competition impact. Microsoft dropping the observer seat may be a strategic move to defend its relationship with OpenAI. Following Microsoft’s investment in OpenAI, the tech giant has seen increased earnings and gained an early lead in the generative AI race. Apple’s support for OpenAI’s ChatGPT led to expectations of an observer seat on the board, but reports suggest Apple has opted not to take it. The decision to drop the observer seat may be influenced by ongoing competition and antitrust scrutiny of big tech’s influence over emerging AI players like OpenAI. Regulators are focused on the complex relationships between big tech and AI providers, prompting companies like Microsoft to carefully consider their arrangements with AI partners.

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