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The tension at OpenAI seemed to calm down by Tuesday, but the situation is still unresolved as key figures continue their negotiations.
Bloomberg reports that former OpenAI CEO Sam Altman is in talks with the board, including Adam D’Angelo, the CEO of Quora and a current board member, about a possible return. Interim CEO Emmett Shear has also reportedly said he might resign if the board doesn’t clarify why they dismissed Altman.
The leadership at OpenAI underwent a dramatic change on Friday when Sam Altman was abruptly removed from his position over concerns that he wasn’t being “consistently candid.” Since the announcement, the board has mostly stayed quiet, but on Monday, OpenAI’s chief scientist, Ilya Sutskever, publicly expressed regret over his part in Altman’s dismissal.
Greg Brockman, the president, was also removed from the board, which led to intense speculation about Altman’s next move and the secrets behind his dismissal. Some sources indicated that powerful allies were pushing for his return, and employees were threatening to quit without him as their leader.
Despite being ousted in an unexpected manner, Altman might make a comeback as influential supporters like Satya Nadella from Microsoft have reportedly intervened, offering positions to any dissatisfied OpenAI employees. The uncertainty has led to speculation about whether Altman will start a rival company or be reinstated soon, creating a significant stir in the tech world.
By Tuesday, the legal implications of the board’s decisions became a major concern. Reports suggested that some investors were considering legal actions against the board, concerned about the sudden removal of Altman and the potential risks to their investments in OpenAI, a leading company in the generative AI sector.
The sudden exit threat from most of the company’s 700-plus employees has added to investors’ worries about losing their significant investments. However, due to OpenAI’s unique corporate structure, where the nonprofit parent organization holds ultimate control, investors’ legal options may be limited.
Experts believe that investors might have a weak case since companies generally have wide latitude in making business decisions, and nonprofit boards have more flexible obligations compared to for-profit ones. Although firing a visionary founder is shocking, it’s not unprecedented – reminiscent of Apple’s dismissal of Steve Jobs. OpenAI’s insulation from investors, facilitated by its nonprofit structure, could be seen as beneficial, allowing it to stay true to its core mission and oversight. While the leadership upheaval has caused significant turmoil, investors may struggle to change the outcome.
Further questions remain about previous legal actions against OpenAI involving copyrighted materials used to train its foundation models. Earlier, OpenAI filed motions to dismiss many claims in copyright lawsuits by authors and comedian Sarah Silverman, arguing that its large language models were transformative intellectual properties. As new legal challenges emerge, the nonprofit’s ultimate control and the broad business latitude could provide strong defenses. The future legal landscape will depend on how these events unfold.
OpenAI employees considering leaving have several options. Beyond offers from Microsoft, other tech companies have extended similar proposals. On Monday, Salesforce CEO Marc Benioff invited any employees who resigned to join Salesforce’s respective AI research team, even ensuring the company would support those working under H1B visas.
The ultimate outcome of Altman’s ouster remains unclear. Microsoft CEO Satya Nadella, in interviews, left the future of OpenAI’s leadership and the possibility of staff migrating to Microsoft open, emphasizing that it was a decision for OpenAI’s board and employees. Nadella stressed the need for better governance at OpenAI to ensure transparency and prevent surprises. When asked who would be OpenAI’s new CEO, he humorously redirected the question back to OpenAI and its board.