Satya Nadella discloses Microsoft, OpenAI’s major investor, was not consulted regarding Sam Altman’s dismissal as repercussions persist
The head of Microsoft has emphasized that OpenAI’s existence is intricately tied to his company’s involvement. Satya Nadella disclosed that the major American tech giant, also OpenAI’s largest investor, was not consulted before the removal of Sam Altman as CEO.
In a conversation with tech journalist Kara Swisher on her podcast, Nadella remarked, “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 declared the recruitment of Altman and OpenAI’s ex-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 remarks coincide with OpenAI’s report of being engaged in “intense discussions” to address its staff and leadership turmoil. According to a memo seen by Bloomberg News, the company’s vice-president of global affairs informed the staff on Monday that OpenAI management was in communication 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 protesting Altman’s dismissal. Over 700 of OpenAI’s 750 staff members have endorsed a letter urging the board to restore 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 run 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 convey appreciation 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.