OpenAI Appoints Ex-Twitch Boss as Interim CEO; Altman Joins Microsoft 

The OpenAI logo is seen in this illustration taken, February 3, 2023. (Reuters)
The OpenAI logo is seen in this illustration taken, February 3, 2023. (Reuters)
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OpenAI Appoints Ex-Twitch Boss as Interim CEO; Altman Joins Microsoft 

The OpenAI logo is seen in this illustration taken, February 3, 2023. (Reuters)
The OpenAI logo is seen in this illustration taken, February 3, 2023. (Reuters)

OpenAI has appointed ex-Twitch boss Emmett Shear to lead the startup, replacing Sam Altman who will join the company's top backer Microsoft to lead a new advanced AI research team, the CEO of the software giant said late on Sunday.

"We look forward to getting to know Emmett Shear and OAI's new leadership team and working with them," Microsoft CEO Satya Nadella posted on social media platform X. He added Microsoft remains committed to its partnership with OpenAI.

Shear was named interim CEO, a person briefed on the appointment told Reuters.

The decision not to reinstate Altman as CEO of the company behind ChatGPT has confounded efforts by investors and employees of the firm to steady the ship by bringing him back after the board fired him on Friday, a surprise move that rocked the tech world.

They fear his abrupt sacking could lead to a mass exodus of talent and impact an upcoming $86 billion share sale.

Nadella said Altman would join Microsoft to "lead a new advanced AI research team".

Reuters earlier reported that Altman was discussing a possible return to OpenAI and changing the company's governance structure, even as he considered launching a new AI venture.

Altman and Greg Brockman, who stepped down from the OpenAI board as chairman as part of the management shuffle, joined executives at the company's headquarters on Sunday after then interim CEO Mira Murati told staff she invited Altman, The Information earlier reported on Sunday.

Nadella said Brockman would also join the software company.

Altman posted an image of himself on X on Sunday wearing an OpenAI guest badge with the caption: "first and last time i ever wear one of these." In a separate post on X, he reshared Nadella's message with a comment "the mission continues".

Shear co-founded Twitch and had stepped down from the Amazon.com-owned live video streaming platform earlier this year.

Brockman quit over Altman's firing on Friday. Their departures blindsided many employees who discovered the abrupt management change from an internal message and the company's public blog.

Some researchers including Szymon Sidor have also left the company following the CEO change, two people familiar with the matter said. Sidor confirmed quitting.

The Information first reported the appointment of Shear as interim CEO.

Shortly after the internal announcement of Shear's appointment, distraught employees "streamed out" of OpenAI headquarters in San Francisco, The Information reported.

Dozens of staffers internally announced they were quitting the company on Sunday night, it said, citing a person with knowledge of the situation.

OpenAI kicked off the generative AI craze a year ago by releasing ChatGPT. The chatbot became one of the world's fastest-growing software applications.



Salesforce Gains as Software Firm Bets on AI Tools to Power Growth

The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
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Salesforce Gains as Software Firm Bets on AI Tools to Power Growth

The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights

Shares of Salesforce gained more than 5% on Thursday as investors cheered the customer relationship management software maker's upbeat quarterly results and its artificial intelligence push to drive growth.

The company has been heavily investing to integrate its AI technologies into existing products, such as its messaging platform Slack, to enhance their capabilities and attract more customers.

"We continue to see Salesforce as an under-appreciated AI winner as its differentiated data and early success in creating/deploying GenAI agents," Reuters quoted Goldman Sachs analyst Kash Rangan as saying.

Wall Street was concerned that tempered cloud spending would affect Salesforce in a tough economy, but the software-as-a-service (SaaS) firm reported better-than-expected revenue, profit and margins in the second quarter.

Salesforce also raised its profit forecast for the year ending January 2025, as margins continue to expand, thanks to its restructuring efforts last year.

The stock is trading at 24.49 times that of Wall Street's profit expectations, compared with 52.11 for SaaS peer ServiceNow and cloud contact center firm Five9's 13.30.

Salesforce is set to add $14 billion to its market capitalization if premarket gains hold. The company's valuation stood at $248 billion as of Wednesday's close.

"We think these results alone are not good enough to drive a sustainable rally from here. For that, we need more catalysts, which could come with the new AI solutions," which are set to be showcased at its event Dreamforce and launched in October, Barclays analyst Raimo Lenschow said.

Some analysts believe that sustained growth in the coming quarters can come through customer support platform Agentforce, which is not yet commercially available.