Microsoft leaders received minimal warning before the announcement of Sam Altman’s ousting from OpenAI, one of their major investments. Employees at both companies were blindsided by the news, which was delivered abruptly on Friday. OpenAI’s employees were particularly stunned when the company’s co-founder, CEO and president were all removed from their roles in rapid succession.
The sudden executive shakeup was compared to the infamous firing of Steve Jobs from Apple in 1985, indicating its historical significance. Despite the turmoil, Microsoft’s CEO Satya Nadella expressed support for OpenAI’s new leadership and reaffirmed the company’s commitment to its partnership with the organization.
Speculation surrounding OpenAI’s business practices and challenges with profitability emerged, with one Microsoft employee suggesting that the company’s valuation was inflated relative to the economic realities of their product offerings. OpenAI did not immediately respond to requests for comment on these claims.
Nadella pointed to Microsoft’s recent tech conference as evidence of the company’s continued dedication to AI innovation, reassuring that they remain fully invested in the field. Meanwhile, insider journalists reached out to OpenAI and Microsoft employees for any tips or insights they might have on the matter.
The sudden turn of events at OpenAI, one of the industry’s most respected AI companies, has left both employees and industry observers reeling and speculating about the organization’s future.