Microsoft Corp (NASDAQ:MSFT) has given up its seat as an observer on the board of OpenAI, the artificial intelligence company behind ChatGPT.
The Redmond, Washington, colossus, which was given a seat as a major investor following the surprise firing of CEO Sam Altman last November, said in a letter that it was resigning its place on the board with immediate effect.
“We appreciate the support shown by OpenAI leadership and the OpenAI board as we made this decision," the letter said.
Microsoft’s deputy general counsel wrote the letter to OpenAI late on Tuesday, saying the seat was no longer needed as the company had “witnessed significant progress from the newly formed board and are confident in the company’s direction."
“Given all of this, we no longer believe our limited role as an observer is necessary.”
With this move, OpenAI said it will no longer have observer seats on its board.
“We are grateful to Microsoft for voicing confidence in the Board and the direction of the company, and we look forward to continuing our successful partnership," OpenAI said in a statement.
The European Commission in January warned that it is “looking into some of the agreements that have been concluded between large digital market players and generative AI developers and providers” and said it was reviewing Microsoft's investment in OpenAI to see if it was relevant under EU merger regulations.