The Altman, OpenAI, Microsoft Hullabaloo: All You Need to Know

They say that reality is stranger than fiction. This has never been more true than in the recent, bewildering developments at OpenAI. 

The tech world is presently titillated and stricken by the series of (unfortunate?) events unfolding over at OpenAI, the organization that undeniably made AI part of our everyday lexicon. Just when we thought the plot couldn’t twist any further, shenanigans are afoot again. Last week, OpenAI’s Board, seemingly united in its controversial decision, ousted CEO Sam Altman in a dramatic turn of events. Now, in a stunning reversal that could rival any thriller plot, we are witnessing Altman’s (triumphant? confusing?) return.

What Exactly Has Been Going On?

On Friday, the six-member Board of OpenAI (which includes an OpenAI chief scientist, the head of popular question and answer app Quora, and an AI researcher affiliated with Georgetown University) unceremoniously dumped Sam Altman as CEO over what seems like a hastily organized video call. The Board also dismissed its chairman, Greg Brockman, which led to his resignation. The fact that the firing took place summarily without the knowledge or consultation of any of OpenAI’s various stakeholders (including its investors) only compounded the mystery. 

The Board’s statement was cryptic, saying “he was not consistently candid in his communications with the board, hindering its ability to exercise its responsibilities.” To date, it is unclear exactly what led the Board to make this momentous call. 

Thriller or farce? Maybe the premise for the next questionable Netflix show? It’s hard to say, as updates keep pouring into our feeds. Nothing is settled yet, and we don’t know where the chips will fall. 

But this saga has already produced many memorable moments (and hilarious hot takes on social media), and we’re here to recap some of them for you.

The Dead Poets Society Moment

Following the exits of Altman and Brockman, 743 of the 770 staff at OpenAI called on the Board to resign, questioning their competence and stating that their actions were undermining OpenAI’s work. 

Mira Murati, the Chief Technology Officer, who had been appointed as interim CEO, was one of the first signatories appearing in the open letter. Soon after her public show of support for Altman, she was replaced by Emmett Shear (former founder and head of video streaming service Twitch) as the interim CEO.  

But what stood out for us was OpenAI’s very own Dead Poets Society moment, as much-maligned AI hero Sam Altman was booted out, many of the leaders at OpenAI unanimously tweeted “OpenAI is nothing without its people.”

Buyer’s Remorse, Almost in Real-Time

Now, this has got to be one of the fastest about-turns in the history of about-turns. Ilya Sutskever, a well-known scientist who was part of the Board, seemed to realize pretty quickly which way the winds were blowing, and walked back his decision in a tweet saying, “I deeply regret my participation in the board’s actions. I never intended to harm OpenAI. I love everything we’ve built together and I will do everything I can to reunite the company”

He is also one of the signatories to the staff letter condemning the Board’s (meaning: his own?) actions. While the tweet seemed to express genuine regret at having possibly jeopardized the future of OpenAI with a single, ill-considered decision, many online were less impressed and thought it was too little, too late. 

But Why Google Meet?

While Silicon Valley was being rocked to its core by these events, many people noted that the firing of the CEO in a Microsoft-backed company had taken place over … Google Meet. 

This Elon Musk parody account captured it:

And they were hardly the only ones:

A “Poker Move for the Ages”

Arguably, the biggest winner from the fallout of this firing is Satya Nadella, CEO of Microsoft. OpenAI started in 2015 as a nonprofit, but restructured in 2019 with the backing of Microsoft, which has now invested billions in the company (a move which was, in fact, criticized by many, including Elon Musk, as a betrayal of its not-for-profit, open source ethos).  

Microsoft leaped into the fray to prevent a talent exodus and hired Sam Altman along with many key staff at OpenAI. Dan Ives, tech analyst at Wedbush Securities, did not mince words saying that the “trainwreck situation at OpenAI” could “go down in tech history as one of the biggest debacle decisions in the history of Silicon Valley.” He expressed admiration for Nadella, saying that the Board were “at the kid’s poker table and thought they won until Nadella and Microsoft took this all over in a World Series of Poker move for the ages.”

He was not the only one to notice that this was a slam dunk for Microsoft:

Meanwhile, both Altman and Nadella issued open-ended statements that indicate all sorts of possibilities, while reaffirming the ties between OpenAI and Microsoft. 

The Vultures are Circling

And anticipating the imminent demise of OpenAI, other tech giants are already looking to poach the best talent from the company, for instance, this open call from SalesForce CEO Marc Benioff:

So, What’s Next?

Altman has, for better or for worse, been the driving force behind the incredible impact that OpenAI has had, commandeering its transition from a research nonprofit to a full-fledged product company. Altman’s ousting resulted in investors threatening to sue OpenAI, putting the company under intense scrutiny.

Now, after a rollercoaster week, the future once again looks different, with Sam Altman, now set to return as CEO. With a reshuffled Board and the tech world still reeling from the speed of these changes, OpenAI’s next steps are eagerly anticipated. Just earlier this month, Altman had given a presentation at DevDay where he tantalizingly hinted at what’s to come, saying, “What we launch today is going to look very quaint relative to what we’re busy creating for you now.” With AGI or Artificial General Intelligence on the horizon, the LLP-based chatbots of today could indeed seem “quaint”. As Altman retakes the helm amidst lawsuits, investor unrest, and a shaken company morale, all eyes are on how he will navigate these turbulent waters and what this means for the future of AI.

Developing…

____________

Written By: TEChquity India