Microsoft’s Partnership with OpenAI Faces Antitrust Scrutiny
In the wake of the recent boardroom turmoil at OpenAI, the collaboration between Microsoft and the maker of ChatGPT is now under scrutiny by antitrust regulators in both the United States and the United Kingdom. Following the abrupt removal and subsequent reinstatement of CEO Sam Altman, Microsoft secured a non-voting observer position on OpenAI’s board.
This unique position allows Microsoft’s representative to attend board meetings, gaining access to confidential information. However, crucially, they are barred from participating in decisions, including the election or selection of directors.
The specifics of Microsoft’s representative for the non-voting role and the composition of the final OpenAI board remain undisclosed.
While OpenAI’s parent company operates as a non-profit entity, which typically avoids antitrust scrutiny, a for-profit subsidiary was