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Microsoft Gains in Premarket After OpenAI’s Ex-CEO Joins to Lead New Research Team
Sam Altman joined Microsoft on Monday, days after getting unexpectedly ousted by OpenAI.
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Just days after being abruptly forced out by OpenAI’s board of directors, Sam Altman has joined Microsoft (NASDAQ: MSFT). According to an announcement on Monday, Mr. Altman will lead a new advanced AI research team at the tech corporation and will be joined by OpenAI’s co-founder and former president Greg Brockman.
Microsoft to Continue Collaboration With OpenAI
Sam Altman, now a former CEO and ChatGPT maker OpenAI board member, joined Microsoft on Monday to lead a new advanced AI research team. Greg Brockman, co-founder and former president of OpenAI will also join the tech giant.
Microsoft’s CEO Satya Nadella announced the latest twist in an unexpected saga. Meanwhile, Microsoft will “remain committed to our partnership with OpenAI and have confidence in our product roadmap, our ability to continue to innovate with everything we announced at Microsoft Ignite, and continue to support our customers and partners,” Nadella announced on X, formerly Twitter.
Microsoft is OpenAI’s biggest investor. The company’s shares rose 1.8% in the premarket following the announcements.
Altman retweeted Nadella’s post and added a comment: “The mission continues.”
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Altman’s Ousting
Microsoft’s hiring of Altman comes just days after the 38-year-old entrepreneur had been sacked by OpenAI’s board, a company he co-founded and led for the past four years. The details behind the decision remain unclear, although the board said that Altman had not been “consistently candid” in his discussions. However, there was no “malfeasance” involved, OpenAI’s COO Brad Lightcap said in a note to staff on Saturday.
Altman spent the weekend leading a pressure campaign on OpenAI’s four-member board of directors who ousted him. He received significant support from the startup’s investors, employees, and OpenAI executives. Before he was sacked, the ChatGPT maker had six board members, including Altman and Brockman, who quit the company in solidarity after Altman’s ousting.
OpenAI did not tell investors why they were forcing out Altman. After learning the news of his expulsion, multiple investors began pressuring the board to reverse its decision. However, shareholders, including Microsoft, could not directly influence the move because of OpenAI’s atypical structure.
Although the company became a for-profit business, its leadership still answers to a non-profit board. Earlier in the day, OpenAI hired former Twitch boss Emmett Shear as the next CEO.
What do you think was the real reason behind Altman’s ouster? Let us know in the comments below.
Tim Fries
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
