Microsoft chief Nadella says he is 'comfortable' with OpenAI's non-profit governance structure, plays down competition issues.
Microsoft secured a non-voting board observer role at OpenAI following Altman's firing and return, but Nadella said Microsoft isn't seeking a board seat.
The OpenAI board firing of Altman over a supposed communications breakdown spurred widespread disruption at the company, with employees threatening to walk out en masse and work for Microsoft, before the board finally relented and rehired Altman days later.
Microsoft has invested some $13 billion in OpenAI, making it the start-up's biggest investor, and is integrating OpenAI's generative AI tools, such as ChatGPT, across its line-up.
Competition authorities in the EU, the UK and reportedly the US are examining Microsoft's relationship with OpenAI on competition grounds.
Microsoft is OpenAI's exclusive provider of the massively powerful cloud infrastructure its offerings require and in exchange the terms of the firms' agreement reportedly guarantee Microsoft a large share of the start-up's profit under certain conditions.
Nadella said the fact that OpenAI is not a subsidiary is a boost to competition.
This Cyber News was published on www.silicon.co.uk. Publication date: Tue, 16 Jan 2024 14:43:11 +0000