🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

Microsoft seeks changes at OpenAI; former CEO Altman in talks to return -Bloomberg News

Published 11/21/2023, 12:54 PM
Updated 11/21/2023, 08:01 PM
© Reuters. Sam Altman, CEO of OpenAI, attend the Asia-Pacific Economic Cooperation (APEC) CEO Summit in San Francisco, California, U.S. November 16, 2023. REUTERS/Carlos Barria/File Photo

(Reuters) -Sam Altman and OpenAI's board have opened discussions to bring back its former CEO, and the startup's backer Microsoft (NASDAQ:MSFT) is discussing governance changes it plans to request from the board, Bloomberg News reported on Tuesday, citing sources.

Talks are taking place between Altman and at least one board member, Quora CEO Adam D'Angelo, Bloomberg said in a report citing people familiar with the matter.

Altman could return as a director on a transitional board and the talks also involve some investors of the artificial intelligence startup.

The ChatGPT owner fired Altman in a surprise move on Friday and before the weekend was over, OpenAI investor Microsoft hired him and Greg Brockman, another co-founder of the startup.

But things appeared fluid, as Microsoft CEO Satya Nadella told media on Monday "irrespective of where Sam is, he's working with Microsoft" and that governance at OpenAI needed to change.

The changes Microsoft is planning to ask OpenAI's board for may include an increase in the size of the board and a boost to the experience level required for members, Bloomberg said.

Other than Quora's D'Angelo, OpenAI's four-person board consisted of Tasha McCauley, Helen Toner and OpenAI chief scientist Ilya Sutskever as of Friday.

Microsoft's deal with OpenAI requires the startup's board to seek Microsoft approval for a merger, and the software giant will look to shore up those protections, Bloomberg said.

OpenAI did not respond to Reuters requests for comment.

Altman's ouster started a revolt at the company. Nearly all of its more than 700 employees threatened to quit in a letter demanding the resignation of the board and reinstatement of Altman and Brockman.

Nadella has said he was open to staff staying at OpenAI or coming to the Windows maker.

© Reuters. Sam Altman, CEO of OpenAI, attend the Asia-Pacific Economic Cooperation (APEC) CEO Summit in San Francisco, California, U.S. November 16, 2023. REUTERS/Carlos Barria/File Photo

OpenAI interim CEO Emmett Shear has told people close to the company that he does not plan to stay if the board cannot clearly convey the reason for Altman's ouster, the Bloomberg report said on Tuesday.

Some investors in OpenAI are considering suing the company's board, sources told Reuters on Monday, on worries that they could lose millions of dollars they invested with the potential collapse of the hottest startup in the rapidly growing generative AI sector.

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.