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Microsoft has announced its decision to give up its observer seat on OpenAI’s board. Apple, which was expected to take a similar position, will no longer pursue one, according to the Financial Times. This move, however, has not alleviated ongoing concerns regarding the relationships between large tech companies and emerging AI players.
Regulatory Scrutiny and Ethical Concerns
Despite these changes, regulators remain vigilant. Amba Kak, co-executive director of the nonprofit AI Now Institute, labeled the announcement as “subterfuge,” suggesting it was designed to obscure the relationships between tech giants and AI startups. Kak emphasized that the timing of this move appears to be a response to global regulatory scrutiny.
The Federal Trade Commission (FTC) continues to monitor the close ties between Microsoft and OpenAI. According to a source, the FTC is conducting a market inquiry into investments and partnerships between AI developers and major cloud service providers.
Ongoing Safety and Ethics Debates
The decision comes amid broader concerns about the safety and ethical implications of rapidly advancing AI technologies. Current and former OpenAI employees voiced their apprehensions in an open letter published on June 4, highlighting the lack of oversight and whistleblower protections in the AI industry. They emphasized that AI companies often prioritize financial gains over effective oversight.
Microsoft’s Explanation
Microsoft cited satisfaction with the restructured OpenAI board as the reason for stepping aside. The new board, formed after the brief ouster of CEO Sam Altman, includes prominent figures such as Paul Nakasone, former director of the National Security Agency, and Adam D’Angelo, CEO of Quora.
Industry Reactions
João Sedoc, an assistant professor of technology at New York University’s Stern School of Business, viewed Microsoft’s move positively, noting it reduces potential conflicts of interest. However, Sedoc also acknowledged potential downsides, particularly concerning AI safety, where Microsoft’s expertise could have been beneficial.
