Microsoft ditches OpenAI board seat to avoid scrutiny
Microsoft’s board observer seat and investment in OpenAI had triggered unease among antitrust watchdogs in the European Union, Britain and the US
By Shajil KumarJul 10, 2024
MICROSOFT has ditched its board observer seat at OpenAI in a move aimed at easing US and UK antitrust regulators' concern about the extent of its control over the AI startup amid the soaring popularity of generative artificial intelligence.
Meanwhile, Apple, which last month said it was bringing OpenAI's chatbot ChatGPT to its devices, will not take an observer role on OpenAI's board after being widely expected to do so, the Financial Times reported, citing a person with direct knowledge of the matter. Apple did not respond to a request for comment.
An OpenAI spokesperson said the company would establish a new approach to engaging with stakeholders by hosting regular meetings with strategic partners such as Microsoft and Apple, and investors such as Thrive Capital and Khosla Ventures.
Microsoft took a non-voting, observer position on OpenAI's board in November after OpenAI CEO Sam Altman took back the reins of the company.
The seat meant Microsoft could attend OpenAI's board meetings and access confidential information but had no voting rights on matters including electing or choosing directors.
The observer seat and Microsoft's more than $10 billion (£7.79bn) investment in OpenAI have triggered unease among antitrust watchdogs in the European Union, Britain and the US over how much control it exerts over OpenAI.
The position provided insights into the board's work without compromising its independence, Microsoft said in a letter to OpenAI dated July 9.
It cited OpenAI's new partnerships, innovation, and growing customer base since Altman's return to the startup as reasons for giving up its observer seat.
"Over the past eight months we have witnessed significant progress by the newly formed board and are confident in the company's direction. Given all of this we no longer believe our limited role as an observer is necessary," it said in the letter.
EU antitrust regulators last month said the partnership would not be subjected to the bloc's merger rules because Microsoft does not control OpenAI, but they would instead seek third-party views on the exclusivity clauses in the agreement.
In contrast, British and US antitrust watchdogs continue to have concerns as well as questions about Microsoft's influence over OpenAI and the latter's independence.
Microsoft is making a smart move by dropping the one tangible evidence of possible control over OpenAI, making it harder for antitrust regulators on both sides of the Atlantic to prove otherwise, said an antitrust lawyer who declined to be named due to the sensitivity of the matter.
Britain's Competition and Markets Authority declined to comment.
Microsoft and OpenAI are increasingly competing to sell AI technology to enterprise customers, aiming to generate revenue and demonstrate their independence to regulators to address antitrust concerns.
Additionally, Microsoft is expanding its AI offerings on the Azure platform and has hired Inflection's CEO to head its consumer AI division, a move widely interpreted as an effort to diversify beyond OpenAI. (Reuters)
Major Food Group, the hospitality powerhouse behind CARBONE and over 50 restaurants worldwide, is bringing Major’s Grill to London’s Cambridge House.
The restaurant will occupy a Georgian ballroom dating back to 1878 within the Grade I-listed Palladian mansion at 94 Piccadilly.
Cambridge House, Auberge Collection, opens in 2026 as a 102-suite luxury hotel with the restaurant as its culinary centrepiece.
Global expansion move
New York's Major Food Group is bringing its signature theatrical dining style to London with the launch of Major's Grill, a glamorous new restaurant set to open at Cambridge House, Auberge Collection in 2026.
The announcement, made on October (15), marks a significant expansion for the hospitality group founded by Mario Carbone, Rich Torrisi and Jeff Zalaznick. Since 2011, the group has built a global empire of over 50 restaurants, bars and private clubs spanning 15 cities worldwide, including New York, Miami, Hong Kong, Dubai and Riyadh.
Major's Grill will be housed at 94 Piccadilly, the former Naval & Military 'In and Out' Club, as part of Reuben Brothers' £1 billion regeneration of 1.3 acres of the Piccadilly Estate. The restaurant will occupy a Georgian ballroom and courtyard dating back to 1878.
"It would be impossible to overstate what a privilege and dream come true it is for Mario, Rich, and me to have the opportunity to serve as the new culinary stewards of this storied London address," noted Jeff Zalaznick, co-founder of Major Food Group.
London luxury revival
Drawing inspiration from classic London grills and mid-century dining culture, the restaurant promises theatrical tableside service, an extensive martini programme with at least 10 variations, and a wine list featuring First Growth Bordeaux, Grand Cru Burgundy and rare cult vintages.
The Grade I-listed Palladian mansion has hosted royalty and political figures since 1756. It served as a proxy Downing Street for Prime Minister Lord Palmerston and later became home to the legendary Naval and Military Club from 1865 to 1999.
"This bold and original concept is exactly what we always envisioned for Cambridge House," said Jamie Reuben, principal at Reuben Brothers. "Together with Major Food Group and Auberge Collection, we're creating a destination inspired by The Grill, the iconic New York institution."
French designer Jean-Louis Deniot will oversee the restaurant's interior renewal. The partnership represents Auberge Collection's continued expansion into urban and European markets, with properties opening in Florence and Geneva earlier in 2025. Major Food Group operates CARBONE locations in Hong Kong, Dubai, Doha and Riyadh, reflecting its global reach beyond North America. Cambridge House will feature 102 suites alongside Major's Grill, with additional amenities including bars, lounges, a subterranean club and a double-level spa.
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