Tech Giant Microsoft Tightens Grip On OpenAI, Proposes Board Expansion And Enhanced Member Qualifications: Report
Portfolio Pulse from Nabaparna Bhattacharya
Microsoft Corporation (NASDAQ:MSFT) is reportedly negotiating management changes with OpenAI, including board expansion and higher qualifications for board members. Microsoft aims to avoid being surprised by OpenAI's strategic decisions and seeks to enhance its control and oversight. The company already has approval rights for mergers, as seen when OpenAI considered merging with Anthropic. Microsoft is looking to increase protections and notification rights for various scenarios. MSFT shares rose 1.39% to $378.24.
November 22, 2023 | 4:15 pm
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Microsoft is pushing for more control over OpenAI by proposing board expansion and stricter member qualifications, reflecting its commitment to maintaining a strong influence on the AI startup's strategic decisions.
Microsoft's proactive approach to managing its investment in OpenAI suggests a strategic focus on AI, which could reassure investors about its commitment to leading in this space. The positive share price movement indicates market approval of these potential changes. However, the actual impact will depend on the final outcome of the negotiations and the market's perception of Microsoft's increased influence over OpenAI.
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