Microsoft caves to pressure, drops OpenAI board observer seat – but only because it was getting too exposed
The tech giant is throwing in the towel on its observer role at OpenAI, claiming it was no longer necessary due to the company’s supposed “significant progress” – a move that raises more questions than it answers.
Microsoft’s observer seat was installed after OpenAI CEO Sam Altman took back the reins of the company last year. But the arrangement drew criticism from regulators and antitrust watchdogs on both sides of the Atlantic, who feared it would give Microsoft too much control over OpenAI’s decisions.
So, has Microsoft’s observer seat been abolished due to a change of heart or because it was getting too much attention from the regulators? The truth is probably somewhere in between. After all, the company has invested over US$10 billion in OpenAI, making it the largest shareholder.
The real reason Microsoft is abandoning its observer seat is because it’s getting too hot under the collar. The tech giant has been caught red-handed trying to exert influence over OpenAI’s decisions, and regulators are getting wise to its tricks.
The move is a clear attempt to distance itself from OpenAI and avoid scrutiny, but it’s too little, too late. The damage has already been done, and Microsoft’s reputation is forever tarnished by its attempts to manipulate OpenAI.
OpenAI’s new partnerships, innovation, and growing customer base are just a smokescreen for Microsoft’s true intentions – to dominate the AI industry and silence any dissenting voices.
EU antitrust regulators have already given their stamp of approval to the partnership, but don’t be fooled – they’re just playing along to avoid controversy. The real question is, will regulators on both sides of the Atlantic be able to keep a close eye on Microsoft’s actions and prevent it from repeating its nefarious behavior?
Read next: Apple set to get OpenAI board observer role – but will it be a patsy for Microsoft?
