Many of the burgeoning AI firms are heavily associated with other, often larger, tech companies, such as OpenAI and Microsoft as well as Anthropic and Amazon. While these new AI firms don’t exclusively work with their primary benefactors, the billions invested into these firms and the contracts signed create an obvious obligation to the larger firms, which some regulatory agencies have found concerning for antitrust reasons.
These agencies, which include the British CMA, the American FTC, and EU regulators, have begun investigations into the partnerships throughout the AI industry. These investigations and related antitrust sentiment drove Microsoft to terminate its board observer seat at OpenAI.
Microsoft obtained this observer seat when Sam Altman regained control of OpenAI after a coup in November. This seat enabled Microsoft to access confidential information and board meetings, creating a close relationship between the two firms. However, Microsoft now says it has “witnessed significant progress by the newly formed board and [is] confident in the company’s direction”.
Despite this flowery language, the most likely reason for terminating the board seat is to reduce the relationship between OpenAI and Microsoft so regulators are dissuaded from pursuing action. After all, the relationship between OpenAI and Microsoft is still very close and of concern to regulators for Microsoft has invested around $13 billion in OpenAI and powers OpenAI’s products and research.