New Delhi: Microsoft secured a major victory in the OpenAI upheaval, recruiting ousted CEO Sam Altman and key staff to bolster its position in the AI race. The move resulted in a staff revolt, with 500 of 770 OpenAI employees threatening to resign unless the board stepped down.
Notably, CTO Mira Murati, Chief Data Scientist Ilya Sutskever, and COO Brad Lightcap were among the d signatories. OpenAI’s board responded by appointing Emmett Shear as interim CEO, resisting calls to reinstate Altman. This marked the third leadership change in three days.
Microsoft’s stock hit a new high as Altman and co-founder Greg Brockman joined to lead an in-house AI research team. Analysts remained optimistic about the OpenAI-Microsoft relationship.
Nadella reaffirmed Microsoft’s commitment to the partnership, expressing confidence in the product roadmap. Altman’s hiring was seen as a “clear win” for Microsoft, creating concerns about OpenAI’s uncertainty.
Altman, credited with igniting the AI supremacy race, brings value to Microsoft, which has invested heavily in OpenAI. Shear, in a statement, pledged to investigate Altman’s firing and ensure OpenAI’s stability.
The decision not to reinstate Altman perplexed investors and employees, raising concerns about talent exodus and impacting an $86 billion share sale. Following Shear’s appointment, distressed OpenAI employees reportedly left the San Francisco headquarters.
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