Microsoft exits OpenAI's boardroom to sidestep regulatory scrutiny

Microsoft is giving up its non-voting observer seat on OpenAI's board, citing progress in the company's direction - yet fear of regulatory scrutiny no doubt also played some part in the decision-making process. The non-voting observer at Microsoft was parachuted onto OpenAI's board following the chaos of last year in which …

[Pascal Monett]

So, Redmond is "confident in the company's direction"

Of course it is. When Ballmer was driving it into the wall it was also quite confident. It took the total disaster that was Vista to finally get rid of that clown.

I wonder what kind of disaster is going to make Redmond think about what it is doing.

It'll take one hell of a disaster when all the Board has to do is check its gold vaults to reassure itself.

[Zibob]

Nonvoting observers...

So they decided things are getting dicey enough that they didn't want to accidentally over hear board decisions that might be extremely illegal, and thus give themselves an out of "we didn't know, they are an independent company"

I would say clever, but that would imply its new and not what happens often, so often that it is my default thought.

[DS999]

Re: Nonvoting observers...

Its because it opens up a company to potential lawsuits if Microsoft or Apple's AI efforts resulted in something that was "too close" to something confidential that had been discussed in front of their nonvoting observer.

Given how new the AI field is, there are going to be a lot of ideas independently invented by more than one company. You don't want to risk such innocent duplication opening yourself up to litigation all for the price of having one person who sits in on board meetings and can't even vote.

[Anonymous Coward]

Re: Nonvoting observers...

in English

An observer's presence raises lawsuit risks if similar AI ideas emerge from tech giants, due to the newness of the field and prevalence of independent invention. The benefit of a non-voting observer doesn't outweigh the potential litigation cost.

[jglathe]

That awfully sounds like some lawsuit would succeed

whose is it