Shocking! Microsoft Says It Does Not Own Any Portion Of OpenAI

Microsoft, an American multinational technology corporation, has said that it does not own any part of OpenAI, an American artificial intelligence research organization.

Frank Shaw, Chief Communications Officer (CCO) of Microsoft, said, ”While details of our agreement remain confidential, it is important to note that Microsoft does not own any portion of OpenAI and is simply entitled to share of profit distributions.”

Microsoft President Brad Smith said that the company only has a non-voting observer position on OpenAI’s board. He called Microsoft’s relationship with OpenAI “very different” from Google’s outright acquisition of DeepMind in the United Kingdom.

UK antitrust regulator reviewing Microsoft, OpenAI partnership

This comes after the UK’s antitrust regulator has said it will review whether to launch a merger probe of Microsoft’s partnership with OpenAI. 

The Competition and Markets Authority (CMA) said, “There have recently been a number of developments in the governance of OpenAI, some of which involved Microsoft.”

The ChatGPT maker said that Microsoft would have a non-voting board seat. Subsequently, CMA launched an ITC to determine whether the Microsoft and OpenAI partnership has resulted in a relevant merger situation.

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The observer position means Microsoft’s representative and senior employees can attend OpenAI’s board meetings but the company will not have voting rights on important matters. Microsoft has revealed to invest over $10 billion into OpenAI. 

The move from the UK watchdog came less than two months after it eventually approved Microsoft’s acquisition of Activision Blizzard.

The two companies are under US and UK antitrust scrutiny following the startup’s boardroom battle that led to the sudden ouster and return of CEO Sam Altman.

Does Microsoft have control over OpenAI?

Microsoft does not have too much control over OpenAI. The recent changes in the OpenAI management and Microsoft’s role in the board does not mean that Microsoft has control over OpenAI. Microsoft only holds a 49% stake in OpenAI.