Unrest at OpenAI: Employees Threaten Exodus to Microsoft Amid Leadership Turmoil
The artificial intelligence research company OpenAI is currently experiencing a significant internal crisis, with most employees threatening to leave for Microsoft following the ousting of the company’s leader, Sam Altman.
The Employee Ultimatum
More than 700 of OpenAI’s roughly 770 employees have signed a letter directed to the company’s board. The letter expresses the employees’ inability to work under the current board due to perceived lack of competence, judgment, and care for the company’s mission. The employees have demanded the board’s resignation and the reinstatement of Altman. In the absence of these actions, they have threatened to leave for Microsoft, which has already assured positions for all OpenAI employees.
Investors and Microsoft’s Role
Investors, including Thrive Capital, Khosla Ventures, and Tiger Global Management, are actively working to protect their investment in OpenAI following the board’s decision to oust Altman. Microsoft CEO Satya Nadella and other investors have been negotiating to bring Altman and former OpenAI president Greg Brockman back into leadership roles. Microsoft, being OpenAI’s biggest investor, has already hired Altman and Brockman to lead a new AI unit. The company is open to their return to OpenAI, with certain conditions, including the resignation of the current board and changes in OpenAI’s governance.
Potential Impact on the AI Industry
The turmoil within OpenAI is not only reshaping the company but also the broader AI industry. As OpenAI spearheaded the global frenzy around generative AI with products like ChatGPT, this internal chaos raises questions about the balance between responsible AI development and the need to attract substantial investment. Furthermore, the situation could trigger other tech companies to poach highly-competitive AI talent. Salesforce CEO Marc Benioff has already offered to employ researchers resigning from OpenAI, providing matching compensation.
Background of the Dispute
The conflict at OpenAI stems from disagreements within the board over the pace of AI development, commercialization strategies, and steps to mitigate potential public harms of AI. Altman’s entrepreneurial ambitions and his clashes with board members, particularly OpenAI’s chief scientist Ilya Sutskever, have also been sources of contention.
Uncertainty and Investor Reactions
Altman’s removal from OpenAI, a company he co-founded, has left the company and its employees facing significant uncertainty. Some investors are reportedly considering devaluing their OpenAI holdings, a move aimed at pressuring the board to resign and reinstate Altman.
