After Microsoft’s (MSFT) recruiting of former OpenAI CEO Sam Altman since his departure from OpenAI last week, over 700 employees from OpenAI sent a letter to the board demanding that OpenAI’s remaining board members resign or those OpenAI employees will join Altman at Microsoft. According to Bloomberg, Altman, Interim CEO Emmett Shear, and board member Adam D’Angelo, have begun discussions to potentially reinstate Altman.
Wall Street Journal Tech Reporter Dan Gallagher joins Yahoo Finance to discuss the talks at OpenAI and what are some of the possible outcomes of the entire situation.
“It’s pretty clear that the only way Sam Altman is going to go back is if things are changed structurally at OpenAI so this kind of situation doesn’t happen again. So if he doesn’t, they don’t come to some agreement like they may keep their structure but OpenAI sounds like it may largely cease to exist at least in the way it has been,” Gallagher speculates. “If Altman goes back then, yeah, it’s interesting because what do Microsoft and the other investors do to say, ‘hey, we’d like actually to have some say here. We’d like to have some protection for us,’ and can they get that?”
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Finance Media needs to bring in their legal analysts to answer these questions. There is legal liability all over the place for all parties involved including Microsoft and Altman.
i doubt anyone actually signed anything, it seems to be negotiations rather than legal
@Johnny Doesn’t Reply All work performed by an employee is the property of your employer. Non compete to non disclosures are common in software industries. You cannot take “your” work and go to a competitor and pickup where you left off.
There is legal liability everywhere here. If Altman goes to work at MS I promise you there will be lawsuits and injunctions filed immediately.
hahahahahahahahaha
@Harry Chutell that to nuvia 😂😂
I don’t think D’Angelo will budge even though he has a major conflict of interest since he is head of Poe. To paraphrase Tricky Dick, “When you have them by the balls, their hearts and minds will follow.”
He might be able to dictate terms.
Yeah but if and when this all comes out he is done for and Poe will be too
Not if Altman tested an unauthorized AGI.@Cosmic Cells
I think he lost that ability when 95+percent of the company pledged to jump ship if he forces his way. D’angelo hands a 80 billion dollar company to Microsoft for the previously invested 10 billion and then his board plagued by lawsuits. Not a victory for anyone except Microsoft. Which is not the ideal winner in my opinion.
is d’angelo Jimmy Apples, the leaker?
@Middle-aged MacDonald probably. That would actually make sense.
OpenAI Inc Board of Directors will be terminated. Microsoft owns 49% of OpenAI. Sam Altman basically reports to Microsoft.
Microsoft has destroyed nearly every product from every company they have acquired. Microsoft is where products go to die because Microsoft has very bad designers.
yahoo finance breaking news that happened like a year ago in tech terms.
Open a.i.’s reputation is shot. It’s a joke. Not because of Sam, but because of what happened. I’d not want to be associated with it. It’s a shame because I really had high hopes for them, but the whole name has been tarnished. As a fortune 500 corporate consumer, I’d much rather Sam be with Microsoft due to the predictability and stability of a well established, MATURE company. Of course I am not a corporate 500 consumer.
I think despite the fall in msft shares today the relationship between OpenAi and msft is even stronger than a week ago. Whether Altman goes back or stays, that bond with Altman and msft is stronger than ever. Nadella has navigated this drama in top form as always. He is a master CEO.
It’s a power struggle between a few in the company. I think it’s mainly Ilya and Sam that are at odds with each other.
@zoner__ MSFT shares are up 13% for the month and 40% for the year largely due to AI. They are only down 0.8% from an all-time high.
so you are or aren’t a corporate consumer? lmao
@Joe L 69 and they will continue to go up. I hold a ton of shares.
One of the dumbest corporate structures ever. The BOD and Sam are to blame. They should never have set the company up this way. The 501c3 should have been a subsidiary of an S Corp the minute they took outside money. The cost to unwind this is going to be astronomical.
Am sure you’ve never recruited leading AI researchers in your whole life that had the capability to deliver actual beneficial working commercial models. If you have, name the ones who are willing to work in a company driven solely by a guy with board that has profit and wall street in mind and tell me what they are doing better than Sam’s team.
@Technoking Facebook, Amazon, Google, Microsoft, Oracle, Apple, to name a few
@J B you may have missed the second condition there, but i don’t actually have a dog in this fight hahaha
@J B i work at one of these companies you listed and have worked at one of the others, it’s not a dumb corporate structure as you mentioned, it was designed that way to attract the talent that is leading in the top field of AI research, the outside money knew what they were getting themselves into and put billions in. Even capital management firms are willing to throw down without many questions asks. Tech visionaires KNOW how impossible it is to get some of these red hot AI talents and keep them functionally working in a cohesive group working towards a unified purpose. So you clearly have no clue how real cutting edge AI research is developed then released for commercialization. And btw it looks like the whole fiasco has resolved without your predicted astronomical costs. Looking at how it all moved the market, looks like there were more winners than losers too.
On the contrary, the valuation will increase if everyone’s back, the board replaced, and turn for-profit.
Guess it wasn’t the last time he wore the guess pass.
AI needs to be moved to a LHC or International Space Station type situation, a global orgnaization of the best of the best of humanity working together.
hahaha tell me what other nice dreams you have
The termites aka the Board are decaying the company
I don’t see how this isn’t a godsend for Altman. And the 700 people he could take along. Microsoft can give Altman a billion dollars. Can the board of OpenAI give him that? And a billion for basically a $90 billion company? Seems like a good deal.
so how much did MSFT spend on this potential acquihire?
Wow still not decided
This company is still less impactful than OnlyFans…
Happy Birthday 🎉Please tell Sir Kurt Russell I said hey😂😂😂😂😂
Does Sam have any response on his pedophilia accusations from his sister?
PLS AND NO SELLING OUT TO EVIL MICROSOFT SAM!
Could this trigger a market crash?
AI stupidity AI Greed. AI is like a rampuri knife. Altman will become even more greedy now
Isn’t Sam’s sister saying that he molested her when she was four years old.
Microsoft invested all the money and they dont have a single member on the board. Non disclosure agreements has created blind spots for the general public viewing the critical aspects of the case specifically privacy.