Microsoft withdraws from OpenAI’s board: What does this mean for the two companies?

The company had a non-voting observer position on the board.

2 min. read

Published onJuly 11, 2024

published onJuly 11, 2024

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Microsoft withdrew from OpenAI’s board as a non-voting observer. The company was given a seat without voting rights on the board of OpenAI only last year, which allowed it to observe the organization but not directly affect its decisions.

Nevertheless,according to the latest reports, Microsoft has decided to step back from its observer role—an unexpected move demonstrating a change in its relationship with OpenAI. This choice follows news that Apple, a separate tech leader, was also reviewing its participation on OpenAI’s board.

Microsoft’s departure from OpenAI’s board is a matter of changing corporate positions and signifies a more profound strategic shift. When the company first assumed the observer seat, OpenAI was changing, and Microsoft intended to offer support without influencing the board’s independence.

Despite the departure, Microsoft has expressed trust in OpenAI’s path. They highlight notable advancements made by the organization under the new board’s guidance. This sentiment is also reflected in a letter from Keith Dolliver, who serves as Microsoft’s deputy general counsel, to the board of directors at OpenAI.

OpenAI has appreciated Microsoft’s assistance and future-oriented view on partnerships. The organization is shifting to frequent stakeholder meetings to encourage teamwork and exchange advancements without utilizing the structured element of board observer positions.

The two companies have a history together, andMicrosoft’s Copilot products use the GPT-4o AI model to functionand complete tasks. So, while this move from Microsoft might not mean anything other than that it trusts OpenAI, it still raises questions about its future partnerships and projects.

In the future, the relationships between OpenAI, Microsoft, and Apple will remain important but might not be officially tied to one another.

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Microsoft withdraws from OpenAI’s board: What does this mean for the two companies?