🚀 ProPicks AI Hits +34.9% Return!Read Now

Microsoft to take non-voting, observer position on OpenAI's board

Published 11/29/2023, 08:24 PM
Updated 11/29/2023, 10:16 PM
© Reuters. FILE PHOTO: OpenAI logo is seen in this illustration taken, February 3, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
MSFT
-

By Akanksha Khushi, Sayantani Ghosh and Krystal Hu

(Reuters) -Microsoft will take a non-voting, observer position on OpenAI's board, CEO Sam Altman said in his first official missive after taking back the reins of the company on Wednesday.

The observer position means Microsoft (NASDAQ:MSFT)'s representative can attend OpenAI's board meetings and access confidential information, but it does not have voting rights on matters including electing or choosing directors.

Microsoft CEO Satya Nadella, who had recruited Altman to Microsoft after his ouster from OpenAI, had said earlier that governance at the ChatGPT maker needs to change.

OpenAI said last week announced a new initial board that consists of former Salesforce (NYSE:CRM) co-CEO Bret Taylor as chair and Larry Summers, former U.S. Treasury Secretary. Quora CEO Adam D'Angelo, who was part of the board who fired Altman, also stayed on for the new one.

The new OpenAI board is on an active search for six new members with expertise in fields from technology to safety and policy. OpenAI investors are unlikely to get a seat on the non-profit board, sources told Reuters.

Microsoft has committed to invest over $10 billion into OpenAI and owns 49% of the company. It did not immediately respond to requests for comment.

Mira Murati, who had been OpenAI's chief technology officer and was briefly named interim CEO after Altman's ouster, is once again the company's CTO.

OpenAI ousted Altman on Nov. 17 without any detailed cause, setting off alarm bells among investors and employees. He was reinstated four days later with the promise of a new board.

Altman's exit sparked confusion about the future of the startup at the center of an artificial intelligence boom.

His co-founder Greg Brockman, who had followed Altman out of the company, would return as president, Altman said on Wednesday.

"Greg and I are partners in running this company. We have never quite figured out how to communicate that on the org chart, but we will," Altman said.

OpenAI's chief scientist Ilya Sutskever will no longer be part of the board, Altman said.

Sutskever had joined in the effort to fire Altman but later signed an employee letter demanding his return, expressing regret for his "participation in the board's actions."

© Reuters. FILE PHOTO: OpenAI logo is seen in this illustration taken, February 3, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

"I love and respect Ilya, I think he's a guiding light of the field and a gem of a human being. I harbor zero ill will towards him," Altman said, adding the company was discussing how Sutskever could continue his work at OpenAI.

Apart from Altman, Brockman, Sutskever, D'Angelo, OpenAI's previous board consisted of entrepreneur Tasha McCauley, Helen Toner, director of strategy at Georgetown's Center for Security and Emerging Technology.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.