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OpenAI, Sam Altman, and Microsoft drama: What you need to know

Posted on November 21, 2023

There are some days when the tech news bleeds into the mainstream news. Big Apple launches, New generation consoles, Zuckerberg defending Meta privacy scandals and Elon Musk making us all sigh the biggest sighs.

This is one such day that feels like it could have ramifications for not only the future of artificial intelligence, but the future of humanity.

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Last Friday, the board of OpenAI, the powerful company behind ChatGPT virtual chatbot, announcing it was ousting the influential co-founder and CEO Sam Altman, citing a desire for a change in direction to pull back on the breakneck pace of AI development, to ensure greater responsibility moving forward. Mira Murati, the company’s chief technology officer, was announced as successor.

“OpenAI was deliberately structured to advance our mission: to ensure that artificial general intelligence benefits all humanity. The board remains fully committed to serving this mission,” the board said in a statement.

“We are grateful for Sam’s many contributions to the founding and growth of OpenAI. At the same time, we believe new leadership is necessary as we move forward. As the leader of the company’s research, product, and safety functions, Mira is exceptionally qualified to step into the role of interim CEO. We have the utmost confidence in her ability to lead OpenAI during this transition period.”

The weekend saw a ground swell of support from hundreds of OpenAI employees, who demanded to resign unless Altman was brought back in, and the board itself resigned from the company. Amid this, one of the four board members who orchestrated the change expressed regret on Monday and a desire to reunite the company.

I deeply regret my participation in the board’s actions. I never intended to harm OpenAI. I love everything we’ve built together and I will do everything I can to reunite the company.

— Ilya Sutskever (@ilyasut) November 20, 2023

As of Monday November 29, Altman and another co-founder Greg Brockman had been announced as new Microsoft employees. Altman’s new role would be head-up a new AI research division within Microsoft and, it seems, along with any OpenAI employees that wanted to come along.

Microsoft CEO Satay Nadella confirmed the partnership with OpenAI, of which Microsoft owns a 49% share already, would continue and Altman would be among those working with his former company “to provided them with the resources needed for their success.”

Altman too vowed to ensure “OpenAI continues to thrive.”

We remain committed to our partnership with OpenAI and have confidence in our product roadmap, our ability to continue to innovate with everything we announced at Microsoft Ignite, and in continuing to support our customers and partners. We look forward to getting to know Emmett…

— Satya Nadella (@satyanadella) November 20, 2023

satya and my top priority remains to ensure openai continues to thrive

we are committed to fully providing continuity of operations to our partners and customers

the openai/microsoft partnership makes this very doable

— Sam Altman (@sama) November 20, 2023

Throughout Monday, it was thought the deal with Altman wasn’t open and shut and there may still be a chance Altman could return. As of Monday night, that no longer seems possible, as the former OpenAI CEO’s appointment at Microsoft appears to be is official.

Whether there’ll be much left of OpenAI’s rank and file staffers and engineers remains to be seen. More than 500 of the 700 employees expressed their solidarity with Altman by threatening to depart the company. There is seemingly an open invitation from Satya Nadella for those disgruntled employees to join the new AI research division at Microsoft.

It appears what may come of this, is Microsoft gaining OpenAI’s best talent, while its ongoing partnership with the company gives it access to the proprietary technology ChatGPT and other AI innovations are built upon.

Microsoft has invested $13 billion in OpenAI as part of the partnership with the company that is powering new innovations like Windows Copilot, the conversational elements of Bing Search and so much more.

Although Microsoft doesn’t have influence over the board in its minority shareholding, this situation may be a more power at the very least or a pathway to full ownership of the company at a far lower price than the recent $90 billion valuation.

The decision to ditch Altman is already looking like a terrible own goal from the OpenAI board. Microsoft stands to reap the benefits and perhaps steal the type of AI march that can only be compared to Google’s early and continued dominance of search and, hence, the internet at large.

The events of the last few days are significant; not just for the tech world, but perhaps for humanity itself.

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