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Microsoft unlikely to get a seat on OpenAI board, experts say Satya Nadella's company won't ‘sit passively’ | Mint

Nov 29, 2023 - livemint.com
OpenAI, the artificial intelligence startup, is unlikely to offer a board seat to its investors, including Microsoft, Thrive Capital, Sequoia Capital, and Khosla Ventures. This comes after the company reversed its decision to fire CEO Sam Altman, who did not regain his board seat in the process. Despite Microsoft being OpenAI's biggest backer with a 49% stake and over $10 billion investment, the company's unusual governance structure limits Microsoft's influence.

OpenAI's new board, which has yet to officially meet, appears to prioritize security practices over investor returns. This stance is reflected in the company's reluctance to offer board seats to its investors. However, the situation could change in the future.

Key takeaways:

  • OpenAI is unlikely to offer a board seat to Microsoft and other investors, including Thrive Capital, Sequoia Capital and Khosla Ventures, despite their significant investments.
  • OpenAI's former CEO, Sam Altman, was rehired after being fired, but did not regain his seat on the company's board.
  • Microsoft, which has invested over $10 billion in OpenAI and holds a 49% stake, has little influence over the AI startup due to its unusual governance structure.
  • OpenAI's new board has not officially met yet, but the company's refusal to give its investors a seat on the board suggests it prioritizes security practices over investor returns.
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