From Business Today: 2024-07-10 22:33:16

Microsoft has relinquished its observer seat on OpenAI’s board amidst antitrust concerns. Despite this move, the FTC remains skeptical, citing ongoing reviews of AI partnerships in Big Tech. Microsoft’s $10 billion investment in OpenAI has raised red flags globally.

In a letter to OpenAI, Microsoft defended the observer role but cited recent successes as reason for giving it up. The EU sees no issues with the partnership, but the U.S. and UK are wary of Microsoft’s control. Former antitrust officials acknowledge Microsoft’s strategic decision but urge caution.

To address antitrust worries, Microsoft and OpenAI target enterprise customers in AI. Microsoft seeks to diversify beyond OpenAI, expanding its AI offerings on Azure. Apple integrates OpenAI’s ChatGPT but avoids a board observer role. Regular meetings aim to foster collaboration while addressing regulatory concerns.



Read more at Business Today: Microsoft ditches OpenAI board observer seat; here’s why