In a surprising turn of events, Microsoft CEO Satya Nadella announced that he has hired the recently ousted CEO of OpenAI, Sam Altman, and the former chairman of the board, Greg Brockman, to lead an AI research group at Microsoft. This announcement comes after Altman’s contentious firing from OpenAI and his subsequent negotiations with the remaining board members, which proved unfruitful.
This move by Microsoft has created a considerable buzz in Silicon Valley. While Microsoft’s stock price soared following the news, there are still uncertainties and potential financial implications for both Microsoft and OpenAI. Microsoft may have to fulfill its existing obligations to OpenAI, which could amount to billions of dollars. Additionally, Microsoft will need to establish a new AI research organization under Altman and Brockman within its own ranks. There is also the concern that some of Microsoft’s investment in OpenAI could become a sunk cost if Altman loyalists leave the startup.
However, the biggest losers in this situation are the venture capitalists who have invested heavily in OpenAI. With Altman and Brockman now part of Microsoft, these venture capitalists may find it difficult to regain their confidence in the remaining OpenAI team, potentially resulting in a complete loss of their investment.
Amidst this turmoil, a petition has been circulating within OpenAI, signed by over 500 employees, demanding the resignation of the current four-person board. Even top executives and key board members, such as Ilya Sutskever, have expressed regret over their role in Altman’s ousting and have joined the call for a reunification of the team.
At present, Altman’s future with OpenAI remains uncertain. It is unclear if the board’s decision to fire him can be reversed, but there are murmurs of potential flipping in the board, with the founder of Quora and former CTO of Facebook, Adam D’Angelo, being speculated as a candidate who could flip the decision. Nevertheless, Altman’s response to Nadella’s hiring announcement suggests that he remains committed to the mission of advancing AI.
Ultimately, the outcome of this power struggle between OpenAI and its disgruntled employees and investors will have significant ramifications for the future of AI research and development. As the story unfolds, it is imperative to keep a close eye on how these events shape the landscape of AI technology and its impact on various industries.
Q: Who did Microsoft hire from OpenAI?
A: Microsoft hired Sam Altman, the ousted CEO of OpenAI, and Greg Brockman, the former chairman of the board.
Q: What are the potential financial implications for Microsoft and OpenAI?
A: Microsoft may have to pay billions of dollars for its existing obligations to OpenAI. Additionally, Microsoft will need to establish a new AI research organization under Altman and Brockman within its own ranks, potentially resulting in sunk costs if Altman loyalists leave the startup.
Q: Who are the biggest losers in this situation?
A: The venture capitalists who have invested in OpenAI, such as Khosla Ventures, Sequoia, and Thrive Capital, may face significant losses if confidence in the remaining OpenAI team diminishes.
Q: Who is calling for the resignation of the current OpenAI board?
A: Over 500 OpenAI employees, including top executives and key board members, have signed a petition urging the resignation of the current board.
Q: What is the future of Sam Altman with OpenAI?
A: Altman’s future with OpenAI remains uncertain. Although there are murmurs of potential flipping in the board’s decision, it is unclear if Altman will return to OpenAI.