The future of OpenAI was thrown into chaos on Monday after nearly all employees at the company threatened to resign and join former CEO Sam Altman at Microsoft if he was not reinstated as CEO, extending the dramatic conflict in the boardroom of Silicon Valley.
Mass Resignation Threat
More than 700 of the company’s employees, out of about 770, signed a letter threatening to resign unless the current board resigns and reinstates Altman, according to a person familiar with the matter. In a bizarre twist, the letter included among the signatories Ilya Sutskever, the company’s chief scientist and a key member of the firm’s four-person board, who voted to oust Altman on Friday.
OpenAI’s Future in Doubt
The potential resignation threat from OpenAI employees places the future of the lab in jeopardy, marking a radical shift for a company that, just days ago, was considered one of the most promising startups in Silicon Valley with a valuation nearing $90 billion. This outcome would leave a significant gap in the artificial intelligence industry and could force thousands of startups to either seek a new provider for AI technology or face the prospect of closure. This could allow major tech giants to gain more control over the powerful new AI technology that is rapidly permeating everyday life. Microsoft is likely to emerge as a particular winner, as it could acquire key AI talent. However, the turmoil at OpenAI, which has already been providing its technology to Microsoft as part of a partnership, could also affect its future AI products, which have heavily relied on OpenAI’s technology.
Crisis Impact on OpenAI and Microsoft
In a media campaign on Monday afternoon, Microsoft’s CEO Satya Nadella sought to reassure customers and investors that his company was on solid ground regardless of the outcome. He left the door open for Altman to return to OpenAI or to continue as an AI leader at Microsoft, even as he announced late Sunday night that Altman would join Microsoft. “I am open to both options,” Nadella said in an interview with CNBC.
For his part, Altman also indicated he could return. “We will all work together one way or another,” he said in a post on X on Monday morning. He added that “the top priority remains ensuring the continuity of OpenAI’s operations. We are committed to providing complete continuity for our partners and customers.”
Thus, the fates of Altman and OpenAI remain unclear, three full days after the board’s decision to oust him.
Continued Protests and Anger
Despite the exchanged messages, OpenAI employees continue to express their discontent and anger. Jan Leike, a senior executive at OpenAI and a respected AI researcher, who was seen entering and exiting the company’s offices on Sunday, said on Monday on X that “the OpenAI board must resign.”
Crisis Impact on the AI Industry
Altman’s ousting leaves OpenAI without an executive driving it to develop new consumer products and advance the rollout of AI into the world. The ousting highlighted the significant rift between researchers and executives in the AI field, as some believe that technology should advance rapidly with minimal government regulation to profit and provide useful tools to people, while others are concerned that it could quickly surpass human intelligence and turn against its creators. OpenAI was founded as a nonprofit to provide a counterbalance to the power of big tech in the field of AI, but with its growing financial investments and its move toward developing consumer products, some within the industry have said it may have abandoned its mission.
Benefiting
Other Tech Companies
Other tech companies in Silicon Valley, including Nvidia, Meta, and Salesforce, have taken advantage of the chaos, expressing interest in attracting available OpenAI engineers and researchers.
“We love you all from OpenAI,” said Jim Van, a senior AI scientist at Nvidia, which makes AI chips, on X.
Marc Benioff, CEO of Salesforce, stated that his company would match the salary and capital contribution package of any OpenAI researcher who resigns due to Altman’s firing, “to join immediately” the AI research team at Salesforce.
Meanwhile, Schier said in a statement that he accepted the interim CEO position after “thinking about it for just a few hours,” and mentioned he has a “three-point plan for the company” during the first 30 days. The plan includes appointing an independent investigator to look into the disruptions within the company, and restructuring the management and leadership team at OpenAI in light of recent transitions, stating, “The stability and success of OpenAI are very important to allow disruptions to undermine them in this way.”
Source: https://www.washingtonpost.com/technology/2023/11/20/microsoft-openai-sam-saltman-fired/
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