After a few days of high drama, the OpenAI meltdown continues to fascinate all of us. Started on an otherwise quiet Friday with the sacking of Sam Altman from OpenAI, the series of events that unfolded since then was nothing short of a Hollywood suspense thriller.
As the slogan “OpenAI is nothing without its people” took over X (formerly Twitter), Satya Nadella and Microsoft were quick to strike when the iron was hot. Nadella welcomed Sam Altman and co-founder Greg Brockman to Microsoft along with all of OpenAI’s 730+ employees who are arguably some of the world’s best engineers.
OpenAI’s loss, Microsoft’s Gain
OpenAI consists of a bunch of passionate researchers – people who believed they joined a cause rather than a company. Altman’s sacking probably broke their unity of purpose, which triggered an unprecedented revolt against the Board. That worked really in favor of Microsoft – at least at that moment.
“If you told me 10 years ago that a group of the smartest engineers in the land would evoke the threat, “Do what I say or I will go to work at Microsoft,” I would not have believed you. Amazing shift in corporate reputation (and much credit to Satya),” Benchmark General Partner Bill Gurley tweeted.
The Board, many of whom later openly expressed regret in their decision, didn’t have much choice but to start talks with Altman. The news of Altman and Brockman leading Microsoft’s AI research arm was already out by then. It seemed like a big crisis and for a while, Microsoft and Nadella appeared to be in a sweet spot despite its $10 Bn commitment to OpenAI.
Nadella’s move was referred as ‘a genius business move’ that can make Microsoft the most powerful player in the AI game. Its stock climbed up $7.59 – a 2% spike, raising its market cap to $2.81 trillion. Forbes reported the move as the most remarkable ‘aquihires without an actual acquisition’.
The 360 – degree turn
However, last we heard, Altman and Brockman are back to OpenAI. “I love OpenAI, and everything I’ve done over the past few days has been in service of keeping this team and its mission together. When I decided to join Microsoft on Sunday evening, it was clear that was the best path for me and the team. With the new board and with Satya’s support, I’m looking forward to returning to OpenAI, and building on our strong partnership with Microsoft,” Sam wrote on X, at 11.38 AM IST on Nov 22nd.
Brockman kept it simple – “Returning to OpenAI & getting back to coding tonight”. Mind you, this was roughly after 100 hours since he took to X to post a copy of the message that he sent to OpenAI team stating “…I quit.”
Altman’s return is as dramatic as his exit perhaps. But what does this mean for Nadella who seemed to have larger ambitions? Is it really a setback or he thinks it’s most appropriate to keep Altman where he always belonged? In the process, Microsoft’s stocks reportedly dipped 6 percentage.
Nadella, as always, has been quick to respond to Altman’s decision to return to OpenAI-
“We are encouraged by the changes to the OpenAI board. We believe this is a first essential step on a path to more stable, well-informed, and effective governance. Sam, Greg, and I have talked and agreed they have a key role to play along with the OAI leadership team in ensuring OAI continues to thrive and build on its mission. We look forward to building on our strong partnership and delivering the value of this next generation of AI to our customers and partners.” he wrote a few minutes after Altman announced his decision on X, on Wednesday.
Reports suggest that both sides have agreed to an investigation presumably by an outside, independent law firm. TechCrunch reported that the OpenAI board is open to appointing an extended board of upto 9 people that will relook at the governance of the firm, which has been incurring criticism owing to its unusual structure. And chances are, Microsoft will have a bigger say in these governance changes.
For now, the grand theatrics seem to have finally cooled off and the five days of uproar seems unnecessary. One is left to wonder, however, the motives of the key stakeholders involved in this saga. As one of the users on X candidly wrote under Altman’s come back tweet – “The lengths this man will go to not use Microsoft teams!”.
