Microsoft has renounced its observer seat on the board of OpenAI, effective from July 9, as the company is reportedly confident in OpenAI's direction after seeing enough progress in governance improvements. The observer seat allowed Microsoft access to confidential information and participation in OpenAI board meetings despite lacking voting rights.
Analyst QuickTake: Microsoft took an observer role following Sam Altman's dismissal and subsequent reappointment at OpenAI last year. During this period, the board underwent significant changes, with Quora CEO Adam D’Angelo being the sole member to retain his position. Earlier this month, Apple was also expected to take an observer role on OpenAI’s board as part of a deal to integrate ChatGPT into its devices, but it is unlikely this would happen as OpenAI will reportedly not allow any other observer seats after this change.
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