The Implications of OpenAI’s Revolt for Microsoft

The Implications of OpenAI’s Revolt for Microsoft



What revolt at OpenAI means for Microsoft

“The mission‌ continues,” tweeted Sam Altman, the co-founder of OpenAI, the startup behind ChatGPT,‍ on November 19th. But precisely ‌where ‌it ‍will continue remains unclear. Mr Altman’s tweet was part of an announcement that he was⁤ joining Microsoft. Two days earlier, to the astonishment of Silicon Valley, he ​had been fired from Openai for not being “consistently candid in his communications with the board”. Then Satya Nadella,‍ Microsoft’s ‌boss, announced that Mr⁢ Altman would “lead a new⁣ advanced⁤ AI [artificial intelligence] research team” within the tech giant. ⁣At first it looked like Mr Altman would be accompanied ⁤by just a⁢ few former ⁤colleagues. Many more may follow. The vast majority‌ of OpenAI’s 770 staff have signed a letter ‌threatening to resign if the board fails to reinstate Mr Altman.

The shenanigans involving the world’s hottest startup ⁢are not over. The ⁣Verge, a tech-focused ⁢online publication, has reported that Mr⁢ Altman​ may ⁤be willing to return to OpenAI, if the⁣ board ‍members responsible‌ for his dismissal themselves ​resign. Mr Nadella also seems to allow for that⁢ possibility. His manoeuvring could ‌look shrewd either way. If Mr Altman returns, then Microsoft, Openai’s ⁣biggest investor, would have supported ​him at a time of crisis,‌ strengthening an‍ important ⁣corporate relationship. If Mr Altman and friends do join Microsoft, Mr Nadella could look even ⁤smarter. He would have brought in⁣ house the talent and technology that the⁤ world’s second-most ​valuable company is betting its future on.

Microsoft has long invested ⁢in various forms of AI. It first announced⁤ it was working⁢ with OpenAI in 2016, and has since⁢ invested $13bn in the⁤ startup for ⁣what is reported‌ to be ‌a 49% ‌stake. The⁤ deal means that Openai’s technology has to run on Azure, Microsoft’s cloud-computing arm. In exchange ⁤OpenAI ⁤has access to ⁣enormous amounts of Microsoft’s⁤ processing power, which ‌it needs to “train” its…

2023-11-21 03:18:00
Original from www.economist.com
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