Satya Nadella reveals that Microsoft, a major investor in OpenAI, was not consulted about Sam Altman’s dismissal as consequences continue
The leader of Microsoft underscores the intricate connection between his company’s involvement and OpenAI’s existence. Satya Nadella revealed that the major American tech giant, also the largest investor in OpenAI, was not consulted before the removal of Sam Altman as CEO.
In a conversation with tech journalist Kara Swisher on her podcast, Nadella commented, “It’s not just about the money and capital. Consider this: Sam chose Microsoft once, Sam chose Microsoft twice. We need to reflect on why. OpenAI’s mission is not possible without Microsoft significantly engaging and partnering with the company.
On Monday, Microsoft announced the recruitment of Altman and OpenAI’s former president, Greg Brockman, who had stepped down post the dismissal of his colleagues, to a newly formed AI unit.
Nadella informed Swisher that Microsoft lacked any association with the non-profit board, responsible for overseeing a commercial subsidiary managed by Altman. Nevertheless, he expressed, “As a partner, I believe it’s reasonable to expect consultation on significant decisions.
Nadella’s statements align with OpenAI’s report of being involved in “intense discussions” to address its internal staff and leadership challenges. According to a memo obtained by Bloomberg News, the company’s vice-president of global affairs informed the staff on Monday that OpenAI management was in talks with Altman, interim chief Emmett Shear, and the board. However, they were not ready to provide a final response that evening.
The memo stated, “We are continuing to explore mutually agreeable options and are scheduled to reconvene tomorrow morning when everyone has had a little more sleep. These intense discussions can be prolonged, and I understand it may feel challenging to exercise patience.
Employees at the San Francisco-based company are openly expressing their discontent with Altman’s dismissal. Over 700 of OpenAI’s 750 staff members have endorsed a letter urging the board to reinstate Altman to his position and subsequently step down.
In a subsequent interview, Nadella advocated for changes in the governance of OpenAI, the company responsible for the ChatGPT chatbot, which was thrown into turmoil by Altman’s sudden removal last week.
The four-member OpenAI board, responsible for Altman’s dismissal on Friday and public accusations of his lack of consistent communication, continues to face calls to step down. Notably, one of its members, OpenAI’s chief scientist Ilya Sutskever, is among those urging the board’s resignation.
Through various interviews, Nadella underscored the need for reforms at OpenAI, originally founded as a non-profit entity but later establishing a commercial subsidiary overseen by Altman.
Nadella expressed to CNBC on Monday, “It’s evident now that there needs to be a change in governance,” and mentioned that Microsoft would engage in a constructive dialogue with OpenAI’s board regarding this matter.
He emphasized that the decision for OpenAI employees to either remain in their current positions or transition to Microsoft was up to them. “I’m open to both options,” he stated.
A day after the announcement of Altman joining Microsoft, Nadella hinted that Altman might not directly work for the tech giant after all. “Regardless of Sam’s location, he is collaborating with Microsoft,” he told Bloomberg.
In a letter on Monday, numerous employees at the startup urged the board to reconsider its decision. “We, the undersigned, may choose to resign from OpenAI and join the newly announced Microsoft subsidiary led by Sam Altman and Greg Brockman,” they wrote. “We will take this step imminently unless all current board members resign and reinstate Sam Altman and Greg Brockman.
Altman has taken to social media in the past few days to express gratitude to those at OpenAI, echoing the sentiment that the company “is nothing without its people” on their profiles.
In a post on X (formerly Twitter) on Monday, he stated, “Satya and my top priority remain to ensure OpenAI continues to thrive. We are committed to ensuring full continuity of operations for our partners and customers. The OpenAI/Microsoft partnership makes this very achievable.