Altman is returning as OpenAI CEO just days after his dismissal, Reuters reports.
ChatGPT maker has also unveiled its new initial board of directors. It will include former Salesforce co-CEO Bret Taylor as chairman and Larry Summers, US former Treasury Secretary, and Adam D’Angelo as directors. D’Angelo was part of the original panel that fired Altman.
Altman’s return has the potential to herald a new era for the startup, which has long raised concerns among employees about the dangers of AI and its potential for commercialisation.
“i’m looking forward to returning to openai.”
The original board failed to provide an exhaustive explanation for Altman’s dismissal on Friday, attributing it to a lack of candour and the need to protect OpenAI’s mission in developing artificial intelligence that benefits humanity.
“There are still huge questions about why Altman was fired and why Microsoft had been kept in the dark about the decision. What does seem clear is that Microsoft will now play a much bigger role, that the partnership will become stronger and the two companies more integrated.”
Analysts claim the reshuffle will favour Altman and Microsoft (MSFT.O), which has pledged billions of dollars to the startup and is distributing the technology to its customers around the world.
Microsoft shares rose nearly 1 per cent in US pre-market trading. The company’s CEO Satya Nadella welcomed the changes.
We believe this is a first essential step on a path to more stable, well-informed, and effective governance.
It remains to be seen whether previous board members who don’t own shares in OpenAI will retain their seats, or whether supporters of its profit-limited subsidiary, such as Microsoft, which owns a 49 per cent stake, will ultimately win board appointments.
Unlike most Silicon Valley startups, OpenAI is overseen by a non-profit parent board designed to guarantee the safety of AI. In 2019, the company established a restricted earnings unit to raise funds and grant stock options to its employees.
“The return of Altman to the board consolidates his influence over the direction of OpenAI, and probably means it will be more bold and profit focused, but also potentially less risk averse.”
Reuters reported earlier that some shareholders were considering legal action after the unrest jeopardised the future of OpenAI, whose valuation was recently expected to exceed $80 billion. However, Tuesday’s events have reassured some investors.
We believe this is the best outcome for the company.
The resignation caused major unrest at OpenAI, with president Greg Brockman leaving in protest. By Sunday, Altman was back in the OpenAI office, awaiting his quick reappointment, when the board surprised him again by appointing former Twitch boss Emmett Shear as interim CEO.
Altman’s masterful move was made possible in part by Microsoft. When he was out of a job, CEO Nadella said Altman could lead a new research group with Brockman and other colleagues who had left OpenAI.
This threat was backed by Microsoft’s enormous computing power, a key asset underpinning OpenAI’s technology, as well as its cadre of computer scientists.
We will come back stronger & more unified than ever.
