Microsoft gives up observer seat on OpenAI board
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Microsoft said late Tuesday that it is giving up an observer seat on OpenAI's board, noting that it has seen "significant progress" over the last eight months, is confident in the company's direction and no longer sees the seat as necessary.
Why it matters: Microsoft pushed for the spot after the November ouster of Sam Altman. The company played a key behind-the-scenes role in securing Altman's return and changes to the company's governance.
Driving the news: In a letter to OpenAI seen by Axios, Microsoft said it was confirming its decision to give up the seat, effective immediately — an indication that the move had already been discussed with the company.
- "We appreciate the support shown by OpenAI leadership and the OpenAI board as we made this decision," Microsoft said.
- "As you know, we accepted the non-voting board observer role at a time when OpenAI was in the process of rebuilding its board," Microsoft said in the letter. "This position provided insights into the board's activities without compromising its independence, and we appreciated the opportunity to serve as an observer during this period of change."
- "Over the past eight months we have witnessed significant progress from the newly formed board and are confident in the company's direction."
- "Given all of this we no longer believe our limited role as an observer is necessary," Microsoft added.
Catch up quick: OpenAI reconstituted its board beginning in November with Altman's return as CEO, retaining only one previous board member (Adam D'Angelo) and adding Bret Taylor as chairman as well as former Treasury secretary Larry Summers.
- Later the company returned Altman to the board and continued to add members, most recently former NSA official Paul Nakasone.
Between the lines: Bloomberg reported last week that OpenAI planned to give Apple executive Phil Schiller an observer seat.
- Apple and OpenAI announced a partnership last month that will see iPhone and Mac users able to use Siri to query ChatGPT.
- With Microsoft's departure, OpenAI no longer plans to have any observers on its board, according to a source familiar with the company's thinking.
- In giving up its observer seat, Microsoft removes a potential sticking point for antitrust regulators who could object to the giant's significant entanglement with OpenAI.
What they're saying: "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.
- OpenAI added that it is "establishing a new approach to informing and engaging key strategic partners — such as Microsoft and Apple — and investors — such as Thrive Capital and Khosla Ventures."
Editor's note: This story was updated to reflect that Microsoft sent the letter to OpenAI late on Tuesday (not Monday).
