The OpenAI Drama Continues: OpenAI Hires Former Twich Chief, Sam Altman Joins Microsoft

Altman believed that raising more funds and diversifying revenue streams were crucial, while some members of the board, who had connections to the AI-skeptical effective altruism movement, saw this as conflicting with the potential risks of advanced AI. During the November 6th event, Altman's announcements, including the introduction of customized versions of ChatGPT that would enable users to create specialized chatbots, reportedly angered Sutskever and those who shared his perspective. OpenAI had planned to eventually allow these customized GPTs to function independently after being created by a user, similar to autonomous agents offered by other companies. However, such agents are seen as concerning by safety advocates.

Ilya Sutskever, OpenAI's chief scientist, is a legend in the field dating back to his research on neural networks at the University of Toronto, and continuing at Google, where he worked at the company's Google Brain lab. In July, Sutskever established a new OpenAI team dedicated to controlling "super-intelligent" AI systems of the future. Tensions between Sutskever and Altman escalated in October when Altman reportedly took steps to minimize Sutskever's position within the company. This caused friction between Sutskever and the board of directors.

Despite being OpenAI's biggest backer by far, Microsoft had only a few minutes advanced notice about Altman's firing. Microsoft CEO Satya Nadella was blindsided by the board's decision, according to people familiar with the situation, and has been in touch with Altman and pledged to support him in whatever steps he takes next.

Microsoft has a tremendous amount of leverage in the dramatic whirlwind of events this weekend — far more than any of OpenAI's other backers. The software giant has committed at least $13 billion to OpenAI, when it signed its first partnership agreement with the AI startup. Microsoft has delivered just a fraction of this cash to OpenAI so far, a report in Semafor, giving the software giant significant power over the startup.

In the future, Microsoft could choose to replace OpenAI's technology with that of another leading AI startup, such as Cohere or a newer contender like Mistral. Alternatively, they could consider utilizing the services of the new AI company co-founded by Altman and the former board chairman of OpenAI who resigned in protest of Altman's firing. The same goes for the venture firms that were negotiating to invest in a new tender of existing shares that would have valued OpenAI at $86 billion.

Sam Altman and Greg Brockman have been hired by Microsoft to lead a new AI research team along with their colleagues. CEO Satya Nadella expressed his excitement to provide them with the necessary resources for success in a post on social media site X. The decision comes after a dramatic weekend during which Altman was abruptly fired from OpenAI by its board of directors. Despite the turmoil, Microsoft remains committed to their partnership with OpenAI and is confident in their ability to continue innovating.