OpenAI Faces Turmoil Over Ousted CEO Sam Altman
An internal memo from OpenAI’s vice president of worldwide affairs Anna Makanju describes the firm as being in “intense discussions” to unify the company, with management in discussions with the board, Altman, and newly appointed interim CEO Emmett Shear. “They are not prepared to give us a final response this evening,” Makanju wrote.
Days of turmoil at OpenAI resulted in Altman being ousted in a boardroom coup before he was tapped to establish an “advanced A.I. research team” with co- founder Greg Brockman at the firm’s largest investor, Microsoft.
Over 90% of the firm’s 770 staff threatened to quit and follow Altman to his new deal. Several of the firm’s investors were exploring legal alternatives. In the meantime, investors are reportedly attempting to orchestrate Altman’s return to OpenAI, with Microsoft signaling that it wouldn’t oppose the move.
OpenAI’s Governance Under Scrutiny
According to unnamed sources cited by Bloomberg, Microsoft has attached conditions to a prospective return for Altman and Brockman, including the resignation of OpenAI’s current board and a restructuring of its governance to prevent a repeat of the week’s turmoil.
OpenAI has an unusual non-profit governance structure that gives the board sweeping powers to resist pressure from investors. This has come under scrutiny following last week’s events, with Microsoft CEO Satya Nadella telling CNBC that, ” At this stage, I think it’s very clear that something has to change around the governance.”
Microsoft shares hit an record-breaking peak following the latest information of Altman’s move to the company. Nadella stressed that Microsoft desires to partner with OpenAI and Sam Altman, irrespective of where Sam is.
Hot Take
Artificial intelligence firm OpenAI is facing intense discussions and probable legal action after founder and former CEO Sam Altman was ousted in a boardroom coup. The turmoil has led to threats from employees to quit and follow Altman to his new deal. Investors, including Microsoft, are now considering structural changes to OpenAI’s governance to prevent a repeat of the recent events. Microsoft has shown support for Altman, while Nadella expressed a desire for continued partnership, regardless of his whereabouts. This situation outlines the whole lot of impact of leadership changes on high-profile organizations, and the necessity for clear, stable governance in the tech industry.
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