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OpenAI Staff Threaten Mass Exodus to Join ex-CEO Altman

OpenAI shocked the tech world when it fired former CEO and co-founder Sam Altman. JUSTIN SULLIVAN / GETTY IMAGES NORTH AMERICA/AFP/File
OpenAI shocked the tech world when it fired former CEO and co-founder Sam Altman. JUSTIN SULLIVAN / GETTY IMAGES NORTH AMERICA/AFP/File
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OpenAI Staff Threaten Mass Exodus to Join ex-CEO Altman

OpenAI shocked the tech world when it fired former CEO and co-founder Sam Altman. JUSTIN SULLIVAN / GETTY IMAGES NORTH AMERICA/AFP/File
OpenAI shocked the tech world when it fired former CEO and co-founder Sam Altman. JUSTIN SULLIVAN / GETTY IMAGES NORTH AMERICA/AFP/File

Hundreds of staff at OpenAI threatened to quit the leading artificial intelligence company on Monday and join Microsoft, deepening a crisis triggered by the shock sacking of CEO Sam Altman.
In a fast-moving sequence of events, Altman, who was ousted by the board on Friday, has now been hired by Microsoft where he will take the lead in developing a new advanced AI research team, AFP said.
There was talk Monday that OpenAI is interested in Altman returning, and that he may be open to the idea under certain conditions.
"We want to partner with Open AI and we want to partner with Sam so irrespective of where Sam is he's working with Microsoft," chief executive Satya Nadella said in a streamed Bloomberg interview.
"That was the case on Friday. That's the case today. And we absolutely believe that will be the case tomorrow."
In a letter released to the media, the vast majority of OpenAI's 770-strong staff suggested they would follow Altman unless the board responsible for his departure resigned.
"Your actions have made it obvious that you are incapable of overseeing OpenAI," the letter said. "Microsoft has assured us that there are positions for all OpenAI employees at this new subsidiary should we choose to join."
A key AI executive at Microsoft confirmed that they all were welcome from OpenAI if the board that removed Altman doesn't resign.
Among the signatories was co-founder Ilya Sutskever, the company's chief scientist and a member of the four-person board who pushed Altman out.
"I deeply regret my participation in the board's actions," Sutskever said in a post on X, formally Twitter. "I never meant to harm OpenAI."
Another signatory was top executive Mira Murati, who was appointed to replace Altman as CEO when he was removed on Friday, but didn't last the weekend in the job.
"We are all going to work together some way or other, and I'm so excited," Altman said on X.
OpenAI has appointed Emmett Shear, a former chief executive of Amazon's streaming platform Twitch, as its new CEO despite pressure from Microsoft and other major investors to reinstate Altman.
After the startup's board sacked Altman, US media cited concerns that he was underestimating the dangers of its tech and leading the company away from its stated mission -- claims his successor has denied.
Nadella wrote on X that Altman will lead a new advanced AI research team at Microsoft, joined by OpenAI co-founder Greg Brockman.
Global tech titan Microsoft has invested more than $10 billion in OpenAI and has rolled out the artificial intelligence pioneer's tech in its own products.
Nadella said Microsoft remains committed to its partnership with OpenAI.
The drama was the talk of Silicon Valley on Monday.
"I know that some people are going to hate me for this, but this is the best show I've seen in my life," added Miguel Fierro, the tech giant's Principal Data Scientist Manager.
Altman shot to fame with the launch of ChatGPT last year, which ignited a race to advance AI research and development, as well as billions being invested in the sector.
His sacking triggered several other high-profile departures from the company, as well as a reported push by investors to bring him back.
But OpenAI stood by its decision in a memo sent to employees Sunday night, saying "Sam's behavior and lack of transparency... undermined the board's ability to effectively supervise the company."
'Badly' handled
Shear confirmed his appointment as OpenAI's interim CEO in a post on X on Monday, while also denying reports Altman had been fired over safety concerns regarding the use of AI technology.
"It's clear that the process and communications around Sam's removal has been handled very badly, which has seriously damaged our trust," Shear wrote.
Generative AI platforms such as ChatGPT are trained on vast amounts of data to enable them to answer questions, even complex ones, in human-like language.
They are also used to generate and manipulate imagery.
But the tech has triggered warnings about the dangers of its misuse -- from blackmailing people with "deepfake" images to the manipulation of images and harmful disinformation.

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All Eyes on AI to Drive Big Tech Earnings

OpenAI vs Microsoft- shutterstock
OpenAI vs Microsoft- shutterstock
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All Eyes on AI to Drive Big Tech Earnings

OpenAI vs Microsoft- shutterstock
OpenAI vs Microsoft- shutterstock

Over the next two weeks, the quarterly results of Big Tech giants will offer a glimpse on the bankability of artificial intelligence and whether the major investments AI requires are sustainable for the long haul.
Analysts at Wedbush Securities, one of Wall Street’s biggest believers in AI’s potential, expect "growth and earnings to accelerate with the AI revolution and the wave of transformation" it is causing.
The market generally agrees with this rosy AI narrative. Analysts forecast double-digit growth for heavyweights Microsoft and Google, in contrast to Apple, a latecomer to the AI party, with only three percent growth expected.
The iPhone maker, which releases its results on August 1, unveiled its new Apple Intelligence system only last month and plans to roll it out gradually over the next months, and only on the latest models.
CFRA analyst Angelo Zino believes that the impact of these new features will not be felt until the iPhone 16 launches in September, the first to feature the new AI powers built-in across all options.
But he expects Apple's upcoming earnings to show improvement in China sales, a black spot since last year.
"Apple’s forecasts for the current quarter will be important" in assessing the company's momentum, said Zino.
But "if there's one that we were maybe a little bit more concerned about, versus the others, it would be Meta," he said.
He pointed out that Mark Zuckerberg's company raised its investment projections last April as it devoted a few billion dollars more on the chips, servers and data centers needed to develop generative AI.
CFRA expects Meta's growth to decelerate through the end of the year. Combined with the expected increase in spending on AI, that should put earnings under pressure.
As for the earnings of cloud giants Microsoft (July 30) and Amazon (August 1), "we expect them to continue to report very good results, in line with or better than market expectations," said Zino.
'Crucial' bet
Microsoft is among the best positioned to monetize generative AI, having moved the fastest to implement it across all its products, and pouring $13 billion into OpenAI, the startup stalwart behind ChatGPT.
Winning the big bet on AI is "crucial" for the group, said Jeremy Goldman of Emarketer, "but the market is willing to give them a level of patience."
The AI frenzy has helped Microsoft's cloud computing business grow in the double digits, something that analysts said could be hard to sustain.
"This type of growth cannot hold forever, but the synergies between cloud and AI make it more likely that Microsoft holds onto reliable cloud growth for some time to come," Goldman said.
As for Amazon, "investors will want to see that the reacceleration of growth over the first quarter wasn’t a one-off" at AWS, the company’s world-leading cloud business, said Matt Britzman of Hargreaves Lansdown.
Since AWS leads "in everything data-related, it should be well placed to capture a huge chunk of the demand coming from the AI wave," he added.

The picture "might be a little less clear" for Google parent Alphabet, which will be the first to publish results on Tuesday, "because of their search business" online, warned Zino.
"Skepticism around AI Overviews," introduced by Google in mid-May, "is certainly justified," said Emarketer analyst Evelyn Mitchell-Wolf.
This new feature, which offers a written text at the top of results in a Google search, ahead of the traditional links to sites, got off to a rocky start.
Internet users were quick to report strange, or potentially dangerous, answers proposed by the feature that had been touted by Google executives as the future direction of search.
According to data from BrightEdge, relayed by Search Engine Land, the number of searches presenting a result generated by AI Overviews has plummeted in recent weeks as Google shies away from the feature.
Still, many are concerned about the evolution of advertising across the internet if Google pushes on with the Overviews model, which reduces the necessity of clicking into links. Content creators, primarily the media, fear a collapse in revenues.
But for Emarketer's Mitchell-Wolf, "as long as Google maintains its status as the default search engine across most smartphones and major browsers, it will continue to be the top destination for search, and the top destination for search ad spending."