In a significant shift, Microsoft has vacated its observer seat on OpenAI’s board, just months after acquiring the non-voting position. According to Axios, Microsoft conveyed its decision in a letter to OpenAI on Tuesday, expressing satisfaction with the progress and direction of the AI company.
OpenAI responded by announcing that no further observers will be appointed to its board, quashing speculation about Apple potentially gaining an observer seat.
“We’re 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 stated in a press release to TechCrunch.
Under the leadership of CFO Sarah Friar, OpenAI is developing a new strategy to engage and inform key strategic partners like Microsoft and Apple, along with investors such as Thrive Capital and Khosla Ventures.
Microsoft initially took the observer position following the controversial firing and rehiring of OpenAI CEO Sam Altman last year. This period saw a major reshuffling of the board, with the current lineup including former Salesforce co-CEO Bret Taylor, former Treasury Secretary Larry Summers, Instacart CEO Fidji Simo, ex-Sony Corp EVP Nicole Seligman, former Bill and Melinda Gates Foundation CEO Dr. Sue Desmond-Hellmann, ex-NSA head Paul Nakasone, and Sam Altman, alongside Quora CEO Adam D’Angelo.
The changes at OpenAI last year also led to the departure of several top researchers, including Andrej Karpathy and Ilya Sutskever. Following his departure, Sutskever founded Safe Superintelligence Inc. (SSI), a company dedicated to advancing AI safety.
OpenAI’s decision to forgo future board observers marks a new chapter in its governance, reflecting confidence in its leadership and strategic direction.
