Microsoft relinquishes observer seat on OpenAI board
Microsoft stated it will relinquish its observer seat on the OpenAI board amidst regulatory concerns over generative AI in Europe and the U.S. Keith Dolliver, Microsoft's Deputy General Counsel, conveyed in a letter to OpenAI that the seat had been beneficial for insights without affecting board independence but was no longer needed due to the board's progress.
The European Commission had flagged a potential antitrust investigation into agreements between large digital market players and generative AI developers, specifically highlighting the Microsoft-OpenAI relationship. Despite the EU's conclusion that the observer seat did not compromise OpenAI's independence, they are gathering further third-party opinions, with the UK's Competition and Markets Authority still expressing concerns.
Microsoft had accepted the nonvoting seat in November to address queries about its involvement in OpenAI after CEO Sam Altman's brief exit and return. Altman had endorsed the partnership with Microsoft, which has invested approximately $13 billion in OpenAI, making significant strides in AI with the launch of ChatGPT in late 2022.
Russell Shor
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Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
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