Sam Altman’s back at OpenAI: Is Microsoft the winner?

The week’s events speak of the influence Sam Altman wields in the AI sphere. (REUTERS)
The week’s events speak of the influence Sam Altman wields in the AI sphere. (REUTERS)

Summary

  • Rattled by Altman’s ouster after having invested an estimated $13 billion in OpenAI, Microsoft can now relax as the AI firm functions as before—under Altman, a new board and perhaps also under investor control for a change.

The leadership twists at OpenAI of ChatGPT fame have been one too many since it declared chief executive officer Sam Altman’s sacking last week. The latest is Altman’s Wednesday reinstatement as CEO, a position he will be taking over from Emmett Shear, who was appointed on Sunday. 

Altman and another co-founder Greg Brockman were headed for top-investor Microsoft, which has a 49% stake in OpenAI, and most of the latter’s staff threatened to do likewise in solidarity with their ousted leader. As soon as Microsoft indicated its doors were open at matching pay packets, OpenAI was apparently left with little choice but to get Altman back on his terms. The week’s events speak of the influence he wields in the AI sphere. Five dramatic days and two interim CEOs later, he is back at the helm, assisted by a new board. 

This suits Microsoft too. It was rattled by Altman’s ouster after having invested an estimated $13 billion in OpenAI and had only just begun drawing upon its generative tools to get up to speed on AI. And while it could have created a new AI lab for Altman’s team, it made more sense for Microsoft to have OpenAI function as before—but under investor control.

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