In a significant move in the artificial intelligence industry, Microsoft has recruited Sam Altman, the former CEO and co-founder of OpenAI, after his unexpected departure from the company in a dramatic boardroom event. This change comes as OpenAI, the creator of ChatGPT, faces its own leadership changes, with the company set to appoint its third CEO in just a few days.
This development marks a substantial shift in the AI landscape, highlighting the technology’s growing importance. Additionally, Greg Brockman, another co-founder of OpenAI, has also joined Microsoft, which has been a major supporter and financial backer of the startup. Brockman’s move follows his resignation from his role as president of OpenAI after Altman’s departure.
Emmett Shear, previously the CEO of Twitch, Amazon’s streaming service, is stepping in as the interim CEO of OpenAI. He takes over from Mira Murati, who had been serving as interim CEO following Altman’s exit. Murati will resume her duties as the chief technology officer of OpenAI.
Microsoft’s CEO, Satya Nadella, expressed enthusiasm about these developments. In a statement on the platform X, formerly known as Twitter, Nadella mentioned looking forward to working with Emmett Shear and shared excitement about Sam Altman and Greg Brockman, along with their colleagues, joining Microsoft to lead a new advanced AI research team.
A victory for Microsoft
Microsoft, with its substantial $13 billion investment, holds the largest stake in OpenAI. Sam Altman, formerly of OpenAI, will take the helm as CEO of a “new group” at Microsoft, as announced by CEO Satya Nadella. Following this news, Microsoft’s shares saw a 2% rise in premarket trading on Monday.
Altman’s transition to Microsoft concludes a period filled with intense speculation, especially over the weekend. There were rumors that the OpenAI board might reconsider its decision and reinstate Altman, a well-known figure in Silicon Valley as both an entrepreneur and investor.
Altman’s visit to OpenAI’s headquarters on Sunday, where he shared a picture of himself with a green guest badge, seemed to fuel these rumors. However, with Microsoft’s announcement on Monday, these speculations were effectively put to rest.
This announcement also prompted a significant reaction from OpenAI employees. In an open letter released on Monday morning, many expressed their dissatisfaction with the board’s handling of Altman’s departure and threatened to resign and join Microsoft alongside Altman.
Altman, in a post on X, spoke of unity and commitment within his new team, expressing excitement about working together. He also commended the leadership at OpenAI, including Mira Murati, for their handling of the situation.
Later, Altman emphasized that his and Nadella’s top priority would be ensuring the continued success and operation of OpenAI, committing to providing support to partners and customers during this transition.
The new face(s) of AI
Emmett Shear, newly appointed as the CEO of OpenAI, expressed his view of the role as a “once-in-a-lifetime” opportunity in an early Monday post on X. Shear, who stepped down as Twitch’s CEO in March, shared that he took the decision to join OpenAI seriously and quickly, recognizing the company’s significance in the tech industry.
Shear acknowledged the challenging situation he’s stepping into, citing the tumultuous events surrounding Sam Altman’s departure from OpenAI and the board’s temporary reconsideration of their decision. He mentioned the damage this has done to the company’s trust and reputation, and announced plans to hire an independent investigator to look into the circumstances leading up to Altman’s firing.
Interestingly, Shear clarified that Altman’s removal wasn’t due to any specific safety concerns or disagreements over commercialization. He emphasized his commitment to OpenAI’s success and the commercial potential of its models, hinting at significant changes to come based on the investigation’s findings and stakeholder discussions.
As CEO, Shear faces the task of navigating relationships with key figures like Altman, Greg Brockman, and Mira Murati, as well as other OpenAI employees who have moved or are moving to Microsoft, OpenAI’s largest strategic partner. Murati, who temporarily served as CEO and has been a vocal supporter of Altman, highlighted the importance of people to OpenAI in a post on X.
Altman, who has been mostly silent about the recent events, responded to a post by Microsoft’s CEO Satya Nadella, expressing his continued commitment to the mission. Nadella, in turn, welcomed Altman, emphasizing Microsoft’s experience in fostering independent cultures within the company, as seen with GitHub, Mojang Studios, and LinkedIn. Nadella expressed excitement for Altman to set a new pace for innovation in his role at Microsoft.
Moving too quickly?
The circumstances surrounding Sam Altman’s dismissal from OpenAI are still not entirely clear. OpenAI’s statement on Friday indicated that Altman’s lack of transparency had impeded the board’s ability to perform its duties, but this explanation left room for speculation.
Greg Brockman provided more insight into the situation through a post on X. He revealed that Altman discovered his firing mere minutes before it was publicly announced, hinting at a conflict between Altman and the research division of OpenAI, led by co-founder and chief scientist Ilya Sutskever.
CNN contributor Kara Swisher, drawing from sources close to the matter, pointed to a key tension: Altman’s push for a more aggressive approach to AI development clashed with the board’s preference for a cautious path. This was compounded by Altman’s private advocacy for rapidly marketing products for profit, contrasting with his public warnings about AI risks.
Altman’s concerns about AI were evident in his comments during a Senate subcommittee hearing in May, where he pondered whether AI would empower individuals like the printing press or be as dangerous as the atom bomb. Despite these public cautions, he was actively accelerating OpenAI’s efforts.
Notably, under Altman’s leadership, OpenAI discussed raising $1 billion from SoftBank with iPhone designer Jony Ive for an AI device intended to supersede smartphones. The company also secured a significant investment from Microsoft, aimed at integrating ChatGPT-like technology in Microsoft’s Bing and other products.
Altman recently announced plans to make OpenAI’s tools broadly accessible, allowing anyone to develop their own versions of ChatGPT. According to Swisher, Microsoft, a major investor and partner, was only informed of Altman’s firing shortly before it was made public, and OpenAI employees were not given prior notice.
