Microsoft has announced that it is relinquishing its observer seat on OpenAI’s board, a move that comes amidst ongoing regulatory scrutiny and concerns about ethics in the artificial intelligence (AI) industry. Apple, which was expected to take a similar position, has also decided against pursuing an observer seat, according to the Financial Times.
The timing of these changes is seen by some as an attempt to obscure the relationships between large tech companies and emerging players in AI, as global regulatory scrutiny intensifies. Amba Kak, co-executive director of the nonprofit AI Now Institute, described the announcement as “subterfuge.”
The close bond between Microsoft and OpenAI, along with their significant control over the AI industry, will continue to be scrutinized by the Federal Trade Commission (FTC). The FTC is reportedly conducting an investigation into the conduct of OpenAI, Microsoft, and Nvidia, focusing on their partnerships and investments.
Concerns about the lack of oversight and whistleblower protections in the AI industry have been raised by current and former OpenAI employees. In an open letter, they highlighted the rapid advancements in AI and the need for effective oversight. They also expressed concerns about AI companies’ limited obligations to share information with governments and civil society.
Microsoft’s decision to give up its board observer seat was not accompanied by any mention of regulators. The company stated that it is satisfied with the revamped composition of OpenAI’s board, which includes individuals such as Paul Nakasone, Adam D’Angelo, Larry Summers, Bret Taylor, and OpenAI CEO Sam Altman.
While some experts view Microsoft’s move as positive for the AI industry, as it reduces potential conflicts of interest, others believe it may have downsides, particularly in terms of AI safety practices. OpenAI has faced internal disagreements regarding its safety culture and processes, leading to the disbandment of its long-term AI risk team.
OpenAI has recently appointed Nakasone to its board and established a Safety and Security Committee to evaluate its processes and safeguards. The committee will make recommendations to the board and update the public after a 90-day evaluation period.