Microsoft has stepped down from its observer role on OpenAI's board, citing improved governance and significant progress by the AI company's new board. This move comes amid increased scrutiny from antitrust regulators in the EU and UK, who are examining the USD13 billion partnership between Microsoft and OpenAI. The decision follows a tumultuous period where OpenAI's CEO Sam Altman was briefly ousted and then reinstated, leading to a board reshuffle. Microsoft expressed confidence in OpenAI's direction and plans to maintain a strong partnership through regular updates and collaboration on safety and security.