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Microsoft<\/a> has announced it will relinquish its observer seat on OpenAI\u2019s board. In a letter, the tech giant expressed that over the past eight months, there has been \u201csignificant progress\u201d and it now has \u201cconfidence in the company\u2019s direction,\u201d stating the observer seat \u201cno longer necessary.\u201d<\/p>\n This move comes after Microsoft assumed a non-voting, observer position on the board in November of the previous year when OpenAI CEO Sam Altman reassumed control<\/a> of the company, which is known for operating the AI chatbot ChatGPT.<\/p>\n Despite expectations, Apple has also opted not to take up the observer role on OpenAI\u2019s board. The decision was cited in a report by the Financial Times<\/a>, which referenced a source directly familiar with the situation. This follows Apple\u2019s recent announcement to integrate OpenAI\u2019s ChatGPT<\/a> into its devices.<\/p>\n Instead of traditional board roles, OpenAI is shifting towards a different model of engagement with its partners. According to an OpenAI spokesperson, under the guidance of the newly appointed chief financial officer Sarah Friar, the company will conduct regular meetings with its key partners instead. This includes Microsoft and Apple, as well as investors such as Thrive Capital and Khosla Ventures.<\/p>\n An OpenAI spokesperson said: \u201cWe\u2019re grateful to Microsoft for voicing confidence in the board and the direction of the company, and we look forward to continuing our successful partnership.\u201d<\/p>\n The initiative was described as \u201ca new approach to informing and engaging key strategic partners.\u201d<\/p>\n In the letter, Microsoft stated: \u201cWe appreciate the support shown by OpenAI leadership and the OpenAI board as we made this decision.<\/p>\n \u201cAs you know, we accepted the non-voting board observer role at a time when OpenAI was in the process of rebuilding its board.\u201d<\/p>\n The company said the position provided insights into the board\u2019s activities \u201cwithout compromising its independence,\u201d adding that it \u201cappreciated the opportunity to serve as an observer during this period of change.\u201d<\/p>\n It added: \u201cOver the past eight months we have witnessed significant progress from the newly formed board and are confident in the company\u2019s direction.\u201d<\/p>\n \u201cGiven all of this we no longer believe our limited role as an observer is necessary,\u201d Microsoft said.<\/p>\n Last month, EU antitrust regulators determined that the partnership between Microsoft and OpenAI would not fall under the bloc\u2019s merger regulations, as Microsoft does not control OpenAI. Instead, the regulators plan to solicit opinions from third parties regarding the exclusivity clauses included in the agreement. In December, the United Kingdom\u2019s Competition and Markets Authority (CMA) also announced it was investigating the collaboration<\/a>.<\/p>\n Featured image: Canva \/\u00a0Brian Smale and Microsoft<\/a><\/em><\/p>\n<\/p><\/div>\nWhat did Microsoft say about the OpenAI board seat?<\/h2>\n