Microsoft drops its observer seat on OpenAI board amid regulatory scrutiny

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Microsoft drops its observer seat on OpenAI board amid regulatory scrutiny
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Microsoft took a nonvoting board seat at OpenAI back in November.

Microsoft took a nonvoting board seat at OpenAI back in November in a bid to quell some of the questions about Microsoft's interest in the startup.said that it would give up its observer seat on the OpenAI board amid regulatory scrutiny into generative artificial intelligence in Europe and the U.S.

Microsoft's Deputy General Counsel Keith Dolliver wrote a letter to OpenAI late on Tuesday, saying that the position had provided insights into the board's activities without compromising its independence.as Microsoft had "witnessed significant progress from the newly formed board." CNBC has reached out to Microsoft and OpenAI for comment.

Altman said in a note to staff at the time that OpenAI "clearly made the right choice to partner with Microsoft and I'm excited that our new board will include them as a non-voting observer." OpenAI emerged as one of the hottest startups globally after releasing its ChatGPT chatbot in late 2022. The tech allows users to input simple text queries and retrieve smart and creative answers that can lead to more in-depth conversations.. The tech giant has effectively become the leader in the push toward foundation AI models given its investment in and partnership with OpenAI.

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