Microsoft And Other Investors’ Seat On OpenAI’s Board Seems Unlikely: Report – Microsoft (NASDAQ:MSFT)


The drama surrounding OpenAI and its co-founder and CEO, Sam Altman, continues to unfold. Altman’s dismissal from his position earlier this month has raised questions about the future of the company and its relationship with Microsoft.

According to Reuters, OpenAI might not offer board seats to Microsoft and other investors, including Khosla Ventures and Thrive Capital. This decision could have significant implications for the relationship between OpenAI and Microsoft, as the tech giant has been one of the biggest supporters of the AI company. Microsoft has invested over $10 billion into OpenAI since 2019 and has been a strong advocate for Altman’s platform.

However, Thomas Hayes, chairman of hedge fund Great Hill Capital, believes that Microsoft will have a say in the matter. He stated, “Microsoft will have something to say about it, given the amount of money that they have put behind them.” It remains to be seen how Microsoft will respond to this situation and whether they will take an active role in shaping the future of OpenAI.

The formation of a new board for OpenAI is also underway. Nine individuals, including Bret Taylor, Larry Summers, and Adam D’Angelo, are expected to be confirmed as the first three directors this week. D’Angelo is the only member from the previous board of six that dismissed Altman.

The involvement of Microsoft in OpenAI is crucial for both companies. Microsoft’s significant financial investment in OpenAI demonstrates their commitment to advancing AI technology. On the other hand, OpenAI benefits from Microsoft’s resources and expertise in the tech industry. The outcome of this situation will likely have a significant impact on the future direction of both companies.

It is worth noting that Microsoft’s CEO, Satya Nadella, has been a strong supporter of Altman throughout this drama. He immediately offered Altman and Greg Brockman, another former OpenAI executive, jobs at Microsoft’s new AI research team. Nadella has also expressed the need for changes in the way OpenAI operates, regardless of Altman’s departure.

In response to the recent reports, a Microsoft spokesperson told Reuters, “We will wait until the board officially says something.” It remains to be seen how Microsoft will navigate this situation and whether they will exert their influence to secure a seat on OpenAI’s board.

The ongoing drama surrounding OpenAI and the uncertainty surrounding its relationship with Microsoft highlights the complexity and challenges involved in the AI industry. As these companies continue to shape the future of AI technology, it is crucial for them to navigate internal conflicts and maintain strong partnerships to drive innovation in this rapidly evolving field.

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