Tech Giant Microsoft Tightens Grip On OpenAI, Proposes Board Expansion And Enhanced Member Qualifications: Report

Microsoft Corporation MSFT is reportedly in talks for a checklist of management changes it plans to request from OpenAI's board.

The software giant, the biggest investor in the artificial intelligence startup, is trying to shield itself from being caught "flat-footed by major strategic moves in OpenAI," according to a news report by Bloomberg.

Microsoft is considering changes that involve requesting OpenAI to expand its board size and raise the qualifications needed for board members, the report read. 

Also Read: Sam Altman Tried To Push Out Another Board Member Before Losing And Getting Ousted Himself: Report

"Surprises are bad, and we just want to make sure things are done in a way that will allow us to partner well," Nadella said in an interview with Bloomberg Television. 

According to the report, significant changes happening without Microsoft in the loop are "not good, and we will definitely ensure that some of the changes that are needed, happen."

This information comes from individuals knowledgeable about Microsoft's plans, who preferred to remain anonymous while talking about these confidential discussions, Bloomberg noted.

Microsoft's agreement with the artificial intelligence firm already required the startup's management to seek Microsoft approval for a merger, which didn't occur this past weekend when OpenAI planned to merge with rival artificial intelligence startup Anthropic, according to the report. 

Microsoft plans to boost protections and add to the number of scenarios where it has either veto or at least notification rights, Bloomberg added.

Price Action: MSFT shares are trading higher by 1.39% to $378.24 on the last check Wednesday. 

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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