By Microsoft has made a strategic move by hiring Sam Altman, a prominent figure in the field of artificial intelligence (AI), preventing him from joining a competitor. Despite this coup, Microsoft still faces challenges in dealing with the fallout from Altman’s recent dismissal at OpenAI.
In an announcement made on Sunday, Microsoft revealed that Altman, the former CEO of OpenAI, and Greg Brockman, the former president of OpenAI, would be joining the company to lead a new advanced AI research team.
Following this news, Microsoft’s shares rose by 2.0% in premarket trading on Monday. However, on Friday, when Altman’s removal from OpenAI was first reported, the stock experienced a 1.7% drop.
Altman’s recruitment by Microsoft comes after failed attempts to reinstate him at OpenAI. Late on Sunday, OpenAI’s board rejected the proposed terms for his return. Despite holding a 49% stake in OpenAI, Microsoft could not overcome resistance from the board that had fired Altman.
Although Microsoft is undoubtedly pleased to have Altman working on AI within the company rather than at a rival like Google-parent Alphabet or Amazon.com, they now face the challenge of balancing their support for Altman’s internal team while still collaborating with OpenAI.
Microsoft CEO Satya Nadella emphasized the company’s commitment to their partnership with OpenAI and expressed confidence in their joint product roadmap in a statement. Nadella also mentioned that Microsoft is eager to become acquainted with OpenAI’s new interim CEO, Emmett Shear, the former chief executive of Amazon-owned Twitch, a live video streaming platform.
Overall, Microsoft’s move to hire Altman signifies their dedication to advancing AI research and positions them favorably in the competitive landscape of technology giants.
Microsoft Faces Challenges Regarding OpenAI and Altman’s Team
Microsoft now faces a dilemma in deciding how to allocate its support and resources between OpenAI and Sam Altman’s team at Microsoft. On one hand, it may seem logical to prioritize Altman and his team, as they offer technology that Microsoft has full control over. However, Microsoft has already made significant investments in OpenAI’s software and integrated it into a large portion of its business operations. Severing these ties would not be a simple task.
Additionally, Altman’s termination has shed light on Microsoft’s limited control over OpenAI and its board. This board’s primary objective is to prioritize social good over profit, which further complicates Microsoft’s decision-making process.
Furthermore, Microsoft will now bear the financial burden of Altman’s team, as their costs will be reflected on the company’s balance sheet. Microsoft will also be directly involved in managing Altman’s other endeavors, such as ventures involving consumer hardware devices and a low-cost AI chips start-up, as reported by The Wall Street Journal.
In a social media post directed towards Altman, Microsoft CEO Satya Nadella expressed his enthusiasm for Altman joining as CEO of the new group. Nadella acknowledged Microsoft’s history of granting founders and innovators the freedom to develop independent identities and cultures within the company.
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