Skip to content 
Search

Latest Stories

Microsoft ditches OpenAI board seat to avoid scrutiny

Microsoft’s board observer seat and investment in OpenAI had triggered unease among antitrust watchdogs in the European Union, Britain and the US

Microsoft ditches OpenAI board seat to avoid scrutiny

MICROSOFT has ditched its board observer seat at OpenAI in a move aimed at easing US and UK antitrust regulators' concern about the extent of its control over the AI startup amid the soaring popularity of generative artificial intelligence.

Meanwhile, Apple, which last month said it was bringing OpenAI's chatbot ChatGPT to its devices, will not take an observer role on OpenAI's board after being widely expected to do so, the Financial Times reported, citing a person with direct knowledge of the matter. Apple did not respond to a request for comment.


An OpenAI spokesperson said the company would establish a new approach to engaging with stakeholders by hosting regular meetings with strategic partners such as Microsoft and Apple, and investors such as Thrive Capital and Khosla Ventures.

Microsoft took a non-voting, observer position on OpenAI's board in November after OpenAI CEO Sam Altman took back the reins of the company.

The seat meant Microsoft could attend OpenAI's board meetings and access confidential information but had no voting rights on matters including electing or choosing directors.

The observer seat and Microsoft's more than $10 billion (£7.79bn) investment in OpenAI have triggered unease among antitrust watchdogs in the European Union, Britain and the US over how much control it exerts over OpenAI.

The position provided insights into the board's work without compromising its independence, Microsoft said in a letter to OpenAI dated July 9.

It cited OpenAI's new partnerships, innovation, and growing customer base since Altman's return to the startup as reasons for giving up its observer 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," it said in the letter.

EU antitrust regulators last month said the partnership would not be subjected to the bloc's merger rules because Microsoft does not control OpenAI, but they would instead seek third-party views on the exclusivity clauses in the agreement.

In contrast, British and US antitrust watchdogs continue to have concerns as well as questions about Microsoft's influence over OpenAI and the latter's independence.

Microsoft is making a smart move by dropping the one tangible evidence of possible control over OpenAI, making it harder for antitrust regulators on both sides of the Atlantic to prove otherwise, said an antitrust lawyer who declined to be named due to the sensitivity of the matter.

Britain's Competition and Markets Authority declined to comment.

Microsoft and OpenAI are increasingly competing to sell AI technology to enterprise customers, aiming to generate revenue and demonstrate their independence to regulators to address antitrust concerns.

Additionally, Microsoft is expanding its AI offerings on the Azure platform and has hired Inflection's CEO to head its consumer AI division, a move widely interpreted as an effort to diversify beyond OpenAI. (Reuters)

More For You

Bangladesh seeks US deal to shield garment industry from tariffs

Workers are engaged at their sewing stations in a garment factory in Savar, on the outskirts of Dhaka, on April 9, 2025. (Photo by MUNIR UZ ZAMAN/AFP via Getty Images)

Bangladesh seeks US deal to shield garment industry from tariffs

BANGLADESH, the world's second-biggest garment manufacturer, aims to strike a trade deal with the US before Donald Trump's punishing tariffs kick in next week, said the country's top commerce official.

Dhaka is proposing to buy Boeing planes and boost imports of US wheat, cotton and oil in a bid to reduce the trade deficit, which Trump used as the reason for imposing painful levies in his "Liberation Day" announcement.

Keep ReadingShow less
UK business district
The Canary Wharf business district including global financial institutions in London.
Getty Images

Bond yields ease following Starmer’s support for Reeves

THE COST of UK government borrowing fell on Thursday, partially reversing the rise seen after Chancellor Rachel Reeves became emotional during Prime Minister’s Questions.

The yield on 10-year government bonds dropped to 4.55 per cent, down from 4.61 per cent the previous day. The pound also recovered slightly to $1.3668 (around £1.00), though it did not regain all its earlier losses.

Keep ReadingShow less
modi-trump-getty
Modi shakes hands with Trump before a meeting at Hyderabad House in New Delhi on February 25, 2020. (Photo: Getty Images)
Getty Images

Indian exporters watch closely as Trump says trade deal with India likely

THE US could reach a trade deal with India that would help American companies compete more easily in the Indian market and reduce tariff rates, President Donald Trump said on Tuesday. However, he cast doubt on a similar deal with Japan.

Speaking to reporters on Air Force One, Trump said he believed India was ready to lower trade barriers, potentially paving the way for an agreement that would avoid the 26 per cent tariff rate he had announced on April 2 and paused until July 9.

Keep ReadingShow less
Kolhapuri sandal sales surge in India post Prada controversy

Customers shop for 'Kolhapuri' sandals, an Indian ethnic footwear, at a store in New Delhi, India, June 27, 2025. REUTERS/Adnan Abidi

Kolhapuri sandal sales surge in India post Prada controversy

INDIAN footwear sellers and artisans are tapping into nationalist pride stoked by the Prada 'sandal scandal' in a bid to boost sales of ethnic slippers with history dating back to the 12th century, raising hopes of reviving a struggling craft.

Sales are surging over the past week for the 'Kolhapuri' sandals that have garnered global attention after Prada sparked a controversy by showcasing similar designs in Milan, without initially crediting the footwear's origins.

Keep ReadingShow less
UK business district
The Canary Wharf business district including global financial institutions in London.
Getty Images

Economy grew 0.7 per cent in Q1 2025, fastest in a year

THE UK economy expanded at its fastest pace in a year during the first quarter of 2025, driven by a rise in home purchases ahead of a tax deadline and higher manufacturing output before the introduction of new US import tariffs.

Gross domestic product rose by 0.7 per cent in the January-to-March period, the Office for National Statistics (ONS) said, confirming its earlier estimate. This was the strongest quarterly growth since the first quarter of 2024.

Keep ReadingShow less