Microsoft steps down from the OpenAI board amidst increasing antitrust scrutiny of AI partnerships.

Money | July 10, 2024, 12:55 p.m.

Microsoft has stepped down from its seat on the board of OpenAI, citing improved governance within the company following last year's boardroom chaos. In a recent letter, Microsoft announced its resignation as an observer on the artificial intelligence company's board, effective immediately. This move comes as antitrust regulators intensify their scrutiny of the powerful AI partnership, with reports of Microsoft investing $13 billion in OpenAI. The decision also follows a power struggle within OpenAI that resulted in the ousting and reinstatement of CEO Sam Altman. Microsoft expressed confidence in OpenAI's new board and direction, stating that its observer role is no longer necessary. This departure signifies a shift in the relationship between big tech companies and AI startups in the face of increased regulatory scrutiny. OpenAI plans to enhance communication with key partners and investors moving forward.