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Sam Altman, who brought AI chatbot ChatGPT to the masses, landed at Microsoft on Monday following his surprise firing as OpenAI's CEO last week.
Microsoft CEO Satya Nadella is winning accolades for hiring Altman and his OpenAI co-founder Greg Brockman, who will work in tandem with OpenAI's new CEO Emmett Shear.
The jockeying, which was likened to a “Game of Thrones” storyline, according to Wedbush Securities analyst Dan Ives, was a strategic win for Nadella, “the adult in the room.”
OPENAI'S SAM ALTMAN IS OUT
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MSFT | MICROSOFT CORP. | 377.44 | +7.59 | +2.05% |
| GOOGL | ALPHABET INC. | 136.25 | +0.94 | +0.69% |
| AMZN | AMAZON.COM INC. | 146.13 | +0.95 | +0.65% |
OPENAI INVESTORS SCRAMBLING TO BRING ALTMAN BACK
“If Microsoft lost Altman he could have gone to Amazon, Google, Apple, or a host of other tech companies craving to get the face of AI globally in their doors. Instead, he is safely in Microsoft's HQ now leading the company's key AI efforts, which we expect many key scientists and developers to leave OpenAI and head directly to Microsoft,” Ives wrote in a note to clients on Monday.
Microsoft CEO Satya Nadella, right, speaks as OpenAI CEO Sam Altman looks on during the first OpenAI DevDay conference on Nov. 6, 2023, in San Francisco. (Justin Sullivan/Getty Images)
Nadella, in a statement that was posted on X, reiterated the company's commitment to work with OpenAI while also hyping his new hires.
“We remain committed to our partnership with OpenAI and have confidence in our product roadmap, our ability to continue to innovate with everything we announced at Microsoft Ignite, and in continuing to support our customers and partners. We look forward to getting to know Emmett Shear and OAI's new leadership team and working with them.
“And we’re extremely excited to share the news that Sam Altman and Greg Brockman, together with colleagues, will be joining Microsoft to lead a new advanced AI research team. We look forward to moving quickly to provide them with the resources needed for their success,” he said.
Microsoft shares rose Monday, and have gained more than 54% this year in part due to the company's deeper push into AI across multiple industries and its own cloud business.
Microsoft
Ives now speculates more OpenAI engineers will likely head to Microsoft.
More than 500 of the artificial intelligence company's roughly 770 workers signed a letter submitted to its board of directors and obtained by FOX Business, threatening to follow Altman to Microsoft unless their demands are met.
OpenAI CEO Sam Altman speaks during a meeting at Station F in Paris on May 26, 2023. (Joel Saget/AFP via Getty Images / Getty Images)
Altman, in a post on X, said, “we have more unity and commitment and focus than ever before. we are all going to work together some way or other, and i’m so excited. one team, one mission.”
OpenAI's small board is also feeling the heat as the “circus-like” situation escalates, noted Ives.
Microsoft CEO Satya Nadella, in a statement that was posted on X, reiterated the company’s commitment to work with OpenAI while also hyping his new hires. (Justin Sullivan / Getty Images)
The four board members are chief scientist Ilya Sutskever, Quora CEO and independent director Adam D’Angelo, independent director entrepreneur Tasha McCauley, and Georgetown Center for Security and Emerging Technology’s Helen Toner.
Prior to the latest developments, Altman was being courted to return to OpenAI with internal efforts by its investors, including Microsoft, according to The Wall Street Journal. OpenAI's board declined to go that route.
CHATGPT CREATOR OPENAI LOOKING TO MAKE ITS OWN AI CHIPS: REPORT
After Altman was ousted, he began hatching plans to launch a new AI company shortly thereafter, according to reports by The Information and New York Times, citing sources familiar with the matter.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NVDA | NVIDIA CORP. | 504.20 | +11.22 | +2.28% |
The Times added that Altman may have pitched several ideas for new AI projects to investors in recent months, including making customized AI chips that could compete with Nvidia and an AI hardware device.
WHAT IS ARTIFICIAL INTELLIGENCE (AI)?
Nvidia
Nvidia is to report quarterly results on Tuesday. Its shares have clocked gains of more than 230% this year as it cements the lead in AI.
FOX Business’ Breck Dumas, Eric Revell, Timothy Nerrozi, Andrea Vacchiano and Greg Wehner contributed to this report.
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