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Microsoft capitalizes on OpenAI turmoil, hires Sam Altman for AI research team

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In a turn of events, Microsoft has seized the opportunity created by the recent turmoil at OpenAI, securing the services of the startup’s former CEO and president Sam Altman. Microsoft’s stock price surged to a record high following the move.

Altman, the former CEO of OpenAI, has assumed a key leadership role at Microsoft, heading a new advanced AI research team. This development comes in tandem with Greg Brockman, Altman’s co-founder at OpenAI, also joining the ranks at Microsoft.

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Satya Nadella, chairman and CEO of Microsoft, announced the change in a post on X. Nadella indicated that more OpenAI personnel could make the move to Microsoft in the near future. Altman reposted the announcement, writing “the mission continues.”

The chain of events began on Friday, Nov. 17 when OpenAI dismissed Altman, citing concerns from the board that he had not been “consistently candid in his communications.” Brockman then resigned, and three senior researchers followed suit. Despite efforts to negotiate Altman’s return, an agreement was not reached.

OpenAI has instead appointed Emmett Shear, the former CEO of Twitch, as the interim CEO. Shear said that he will initiate an investigation into the circumstances leading to his appointment.

On Monday, Nov. 20, Kara Swisher reported that more than 500 OpenAI employees signed a letter advocating for the reinstatement of Altman and Brockman.

They also called for the board to resign.

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LONGWORTH: COMING OFF OF A DRAMATIC WEEKEND, MICROSOFT CAPITALIZED ON THE OPENAI TURMOIL, NOW BOASTING THE STARTUP’S FORMER CEO AND PRESIDENT, ALONGSIDE A RECORD-HIGH STOCK PRICE. HERE’S WHAT WE KNOW.

SAM ALTMAN, OPENAI’S FORMER CEO, HAS ASSUMED LEADERSHIP OF A NEW ADVANCED AI RESEARCH TEAM AT MICROSOFT,

ALONG WITH HIS OPENAI CO-FOUNDER, GREG BROCKMAN.

SATYA NADELLA, MICROSOFT’S CHAIRMAN AND CEO, SHARED THE NEWS ON X, HINTING AT MORE OPENAI EMPLOYEES MAKING THE MOVE.

ALTMAN REPOSTED THAT ANNOUNCEMENT, SAYING “THE MISSION CONTINUES.”

THIS ALL STARTED ON FRIDAY, WHEN OPENAI FIRED ALTMAN, CITING THE BOARD’S CONCERNS THAT HE HAD NOT BEEN “CONSISTENTLY CANDID IN HIS COMMUNICATIONS.”

BROCKMAN RESIGNED, AND THREE SENIOR RESEARCHERS FOLLOWED SUIT.

INVESTORS REPORTEDLY PRESSED FOR ALTMAN’S RETURN, BUT NEGOTIATIONS FELL THROUGH.

INSTEAD, OPENAI HAS APPOINTED EMMETT SHEAR, THE FORMER CEO OF TWITCH, AS THE INTERIM CEO. SHEAR SAYS HE’S INITIATING AN INVESTIGATION INTO THE EVENTS LEADING UP TO HIS HIRING.

ON MONDAY, WE LEARNED THAT MORE THAN 500 OPENAI EMPLOYEES SIGNED A LETTER CALLING TO REINSTATE ALTMAN AND BROCKMAN. HOWEVER, IT APPEARS THE TWO HAVE MOVED ON TO DEVELOP AI TECH FOR THEIR FORMER STARTUP’S BIGGEST INVESTOR.