Close Menu
    Facebook LinkedIn YouTube Instagram X (Twitter)
    Blue Tech Wave Media
    Facebook LinkedIn YouTube Instagram X (Twitter)
    • Home
    • Leadership Alliance
    • Exclusives
    • Internet Governance
      • Regulation
      • Governance Bodies
      • Emerging Tech
    • IT Infrastructure
      • Networking
      • Cloud
      • Data Centres
    • Company Stories
      • Profiles
      • Startups
      • Tech Titans
      • Partner Content
    • Others
      • Fintech
        • Blockchain
        • Payments
        • Regulation
      • Tech Trends
        • AI
        • AR/VR
        • IoT
      • Video / Podcast
    Blue Tech Wave Media
    Home » Microsoft drops OpenAI board observer seat amid scrutiny
    Microsoft-7-10
    Microsoft-7-10
    AI

    Microsoft drops OpenAI board observer seat amid scrutiny

    By j.zhang@btw.mediaJuly 10, 2024No Comments2 Mins Read
    Share
    Facebook Twitter LinkedIn Pinterest Email
    • Microsoft relinquished its board observer seat at OpenAI, citing improved governance and confidence in the AI start-up’s new direction.
    • Despite EU regulators not subjecting the partnership to merger rules, UK and U.S. antitrust authorities remain concerned about Microsoft’s influence over OpenAI.

    OUR TAKE
    Microsoft relinquished its observer seat on OpenAI’s board, citing improved governance and easing regulatory concerns. This move highlights efforts to balance innovation and compliance, ensuring OpenAI’s autonomy while addressing antitrust scrutiny. Microsoft’s ongoing influence and expansion into AI reflect a strategic commitment to competitive fairness and ethical AI governance.
    –Jasmine Zhang, BTW reporter

    What happened

    Microsoft has relinquished its board observer seat at OpenAI, citing significant improvements in the AI start-up’s governance. Microsoft initially took the non-voting observer position in November after OpenAI CEO Sam Altman returned. This move had raised concerns among antitrust regulators in Europe, Britain, and the U.S. about Microsoft’s control over OpenAI.

    Despite these concerns, EU regulators decided last month that the partnership wouldn’t fall under the bloc’s merger rules, while the UK and U.S. authorities remain wary. Microsoft’s $10 billion investment and the seat’s ability to access confidential information were central issues.

    In a July 9 letter, Microsoft expressed confidence in OpenAI’s new board and direction, deeming their observer role unnecessary. Both companies are now focused on selling AI technology to enterprise customers, demonstrating independence to address regulatory concerns. Additionally, Microsoft is broadening its AI offerings on the Azure platform and has appointed Inflection’s CEO to lead its consumer AI division.

    Also read: Exploring the OpenAI and Microsoft partnership

    Also read: Microsoft, OpenAI plot US$100 billion Stargate AI supercomputer

    Why it’s important

    Microsoft ditches OpenAI board observer seat amid regulatory scrutiny. Beyond regulatory pressures, this move reflects a nuanced approach to balancing innovation with compliance. By relinquishing direct oversight, Microsoft aims to bolster OpenAI’s autonomy, crucial in an era scrutinising tech monopolies. Yet, with billions invested, Microsoft’s influence persists, prompting questions about true independence.

    This strategic shift highlights a broader narrative of tech giants navigating antitrust landscapes while expanding AI frontiers. Microsoft’s move to diversify its AI portfolio and leadership signals a robust commitment to competitive fairness. The evolving dynamics between Microsoft and OpenAI are pivotal, shaping not just market competition but also ethical AI governance globally. As AI powers diverse sectors, transparency and collaboration between tech companies and regulators become increasingly vital for fostering innovation responsibly.

    Microsoft OpenAi
    j.zhang@btw.media

    Jasmine Zhang is an intern reporter at Blue Tech Wave specialising in AI and Fintech. She graduated from Kunming University of Science and Technology. Send tips to j.zhang@btw.media.

    Related Posts

    CoreWeave acquires Core Scientific in $9bn AI infrastructure deal

    July 9, 2025

    OpenAI tightens security amid DeepSeek ‘copy’ allegations

    July 9, 2025

    Comcast moves more data with less energy used

    July 9, 2025
    Add A Comment
    Leave A Reply Cancel Reply

    CATEGORIES
    Archives
    • July 2025
    • June 2025
    • May 2025
    • April 2025
    • March 2025
    • February 2025
    • January 2025
    • December 2024
    • November 2024
    • October 2024
    • September 2024
    • August 2024
    • July 2024
    • June 2024
    • May 2024
    • April 2024
    • March 2024
    • February 2024
    • January 2024
    • December 2023
    • November 2023
    • October 2023
    • September 2023
    • August 2023
    • July 2023

    Blue Tech Wave (BTW.Media) is a future-facing tech media brand delivering sharp insights, trendspotting, and bold storytelling across digital, social, and video. We translate complexity into clarity—so you’re always ahead of the curve.

    BTW
    • About BTW
    • Contact Us
    • Join Our Team
    TERMS
    • Privacy Policy
    • Cookie Policy
    • Terms of Use
    Facebook X (Twitter) Instagram YouTube LinkedIn

    Type above and press Enter to search. Press Esc to cancel.