In his inaugural communication since reassuming control of the company, CEO Sam Altman announced that Microsoft would assume a non-voting, observer position on OpenAI’s board. This development comes as OpenAI looks to alter its board of directors with the addition of new members and the removal of some.
As part of the change, Microsoft has received a seat on the AI startup’s board, but without voting rights. This will allow a Microsoft representative to participate in board meetings and access confidential information without possessing voting rights on matters such as director elections or selections.
Microsoft is a major partner of OpenAI with a 49% share in the company, making it one of the biggest investors for AI startups. The Windows maker had invested $10 billion into OpenAI at the start of the year.
Despite being one of OpenAI’s biggest investors, Microsoft was completely blindsided by the startup’s abrupt CEO ouster earlier this month. Microsoft CEO Satya Nadella expressed great disappointment at OpenAI’s move and said that governance at the ChatGPT maker needs to change. He had also recruited Altman after his sudden removal from OpenAI.
Now with a seat on OpenAI’s board, Microsoft will have a much better insight into the inner machinations at the company.
Last week, OpenAI disclosed the formation of a new initial board, appointing Bret Taylor, the former co-CEO of Salesforce, as the chair, and Larry Summers, the former U.S. Treasury Secretary. Adam D’Angelo, the CEO of Quora, who was involved in the previous board that dismissed Altman, retained his position in the new board.
The current OpenAI board is actively seeking six additional members with expertise spanning technology, safety, and policy. It is noteworthy that investors in OpenAI are not expected to secure seats on the non-profit board, as per information from sources cited by Reuters.
Mira Murati, who previously held the position of Chief Technology Officer at OpenAI and briefly served as the interim CEO following Altman’s removal, has resumed her role as the company’s CTO.