Microsoft reportedly said that it would give up its observer seat on the OpenAI board amid regulatory scrutiny into generative artificial intelligence in Europe and the U.S.Microsoft's Deputy General Counsel Keith Dolliver wrote a letter to OpenAI late Tuesday, according to multiple media reports, saying that the position had provided insights into the board's activities without compromising its independence. But the letter added that the seat was no longer needed Microsoft had "witnessed significant progress from the newly formed board," according to the Financial Times. CNBC has reached out to Microsoft and OpenAI for comment. The European Commission previously said Microsoft could face an antitrust investigation, as it looked at the markets for virtual worlds and generative artificial intelligence. The Commission, which is the executive arm of the EU, said in January that it is "looking into some of the agreements that have been concluded between large digital market players and generative AI developers and providers" and singled out the Microsoft-OpenAI tie-up as a particular deal that it will be studying.

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Persons: Keith Dolliver, OpenAI Organizations: Microsoft, U.S, Microsoft's, Financial Times, CNBC, European Commission Locations: Europe