Microsoft Gives Up Observer Seat on OpenAI Board

Microsoft has announced that it is giving up its observer seat on OpenAI’s board, citing “significant progress” made by the company over the last eight months. The tech giant had originally pushed for the seat following the ouster of Sam Altman in November, playing a key role in securing his return and changes to the company’s governance.

In a letter to OpenAI, Microsoft confirmed its decision to relinquish the seat, effective immediately. The company expressed confidence in OpenAI’s direction and stated that it no longer believes its limited role as an observer is necessary.

OpenAI reconstituted its board in November with Altman’s return as CEO, adding new members such as Bret Taylor as chairman and former Treasury Secretary Larry Summers. The company has continued to expand its board, most recently adding former NSA official Paul Nakasone.

With Microsoft’s departure, OpenAI no longer plans to have any observers on its board. This move removes a potential sticking point for antitrust regulators who could object to Microsoft’s significant involvement with the company.

“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,” OpenAI said in a statement to Axios.

The decision by Microsoft to give up its observer seat marks a significant development in the relationship between the two companies and could have implications for the future of AI development and regulation.