Microsoft has relinquished its board observer seat at OpenAI following antitrust scrutiny.

US and UK regulators have raised concerns about Microsoft's influence over the AI startup, driven by the rising popularity of generative artificial intelligence technologies.

Despite Microsoft’s efforts to distance itself, the US Federal Trade Commission (FTC) remains concerned. 

The FTC is reportedly reviewing deals involving major tech companies and leading AI firms, and it sees Microsoft's action as an indication of its awareness of potential antitrust risks.

Apple, which recently announced the integration of OpenAI's ChatGPT into its devices, has opted not to take an observer role on OpenAI's board. 

An OpenAI spokesperson stated that the company will engage with stakeholders differently, proposing regular meetings with strategic partners, including Microsoft and Apple, and major investors.

Microsoft assumed the non-voting observer position on OpenAI’s board in November after OpenAI CEO Sam Altman resumed leadership. 

This role allowed Microsoft to attend board meetings and access confidential information without voting rights. 

However, Microsoft’s investment of over US$10 billion in OpenAI has raised concerns among antitrust authorities in the EU, Britain, and the US about its level of control over the AI company.

In a letter to OpenAI dated July 9, Microsoft explained that the observer position had provided valuable insights without undermining the board's independence. 

The letter cited OpenAI's new partnerships, innovation, and expanding customer base since Altman's return as reasons for giving up the seat. 

‘Over the past eight months, we have witnessed significant progress by 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,’ the letter stated.

EU regulators recently stated that the partnership between Microsoft and OpenAI does not fall under the bloc’s merger rules due to Microsoft not controlling OpenAI. However, they are seeking third-party opinions on the exclusivity clauses in the agreement.