July 10, 2024 – Microsoft has announced its decision to relinquish its observer seat on the OpenAI board of directors, citing the “significant advancements” made by OpenAI over the past eight months and expressing confidence in the company’s future trajectory, thereby deeming the seat no longer necessary.
In a letter addressed to OpenAI, Microsoft confirmed the immediate effectiveness of this decision, expressing gratitude to the OpenAI leadership and board for their support throughout the decision-making process.
Since the departure of Sam Altman in November last year, Microsoft had been actively vying for this position, playing a pivotal behind-the-scenes role in facilitating Altman’s return to OpenAI and catalyzing changes in the company’s governance structure.
Beyond Microsoft, reports from the Financial Times in the UK indicate that Apple will also not assume an observer role on the OpenAI board. OpenAI’s official website underscores its status as a “fully independent company governed by the OpenAI non-profit organization.”
In its letter to OpenAI, Microsoft acknowledged, “As you are aware, we accepted the role of a non-voting board observer during OpenAI’s board reconstruction phase. This position allowed us to gain insights into board activities without influencing its independence, and we are honored to have served in this capacity during this period of transformation.”
Over the past eight months, Microsoft has witnessed remarkable progress made by the newly formed board and remains confident in OpenAI’s direction. Taking all factors into consideration, Microsoft no longer sees the necessity of maintaining its limited observer role.
Earlier reports revealed that Apple and OpenAI had announced their partnership last month, with Bloomberg suggesting that OpenAI planned to offer an observer seat to Apple executive Phil Schiller. However, according to sources familiar with OpenAI’s thinking, following Microsoft’s withdrawal, OpenAI will not appoint any observer seats on its board.
OpenAI commented, “We appreciate Microsoft’s trust in our board and the direction of the company, and we look forward to continuing our successful partnership.” The company further added that it is exploring “a new strategy to engage key strategic partners such as Microsoft and Apple, as well as investors like Thrive Capital and Khosla Ventures, in an informative and participatory manner.”
