Investors consider suing OpenAI following Sam Altman's dismissal, but Microsoft says he could go back to the AI enterprise

The very messy state of affairs at OpenAI may want to value the company extra than it bargained for. After firing famous CEO Sam Altman final week, a flow that induced numerous employees to leave, investors are actually reportedly considering felony movement in opposition to the board. Further complicating matters, Microsoft CEO Satya Nadella, Altman's new boss, has said that the incoming Redmond worker ought to return to OpenAI in a few ability.

To speedy recap, Altman was fired as CEO of the ChatGPT enterprise on Friday. The selection got here after a review by way of the board of directors, which stated it now not had self assurance in Altman's ability to lead OpenAI and live "always candid in his communications with the board." His departure led several OpenAI individuals, together with co-founder Greg Brockman, to leave the agency in protest.

Yesterday, Microsoft boss Nadella introduced that each Altman and Brockman, collectively with different colleagues who left OpenAI, can be becoming a member of Microsoft to lead a new advanced AI research crew.

We continue to be devoted to our partnership with OpenAI and believe in our product roadmap, our ability to preserve to innovate with everything we introduced at Microsoft Ignite, and in persevering with to assist our customers and companions. We look forward to gaining knowledge of Emmett…

– Satya Nadella (@satyanadella) November 20, 2023

None of this is good for OpenAI, of course. According to a brand new file from Reuters, a few investors are now considering legal recourse in opposition to the corporation's board, although it is no longer immediately clean if they may sue OpenAI.

OpenAI has led the generative AI revolution over the past 12 months, attracting investment that consists of around $10 billion from Microsoft, which owns forty nine% of the firm. Other investors and personnel control 49%, even as the remaining 2% is owned with the aid of OpenAI's nonprofit discern.

With extra than seven hundred employees threatening to resign until the company replaces the board, the startup's sudden fall from grace and the threat of disintegrate has investors panicking.

Reuters notes that OpenAI is controlled by means of its nonprofit discern company, meaning venture capitalists don't maintain board seats or have vote casting energy, as is normally the case. OpenAI's shape way that it might be difficult for buyers to sue, or even if it's miles viable, they could have a weak case.

On Monday, Nadella changed into asked whether Altman was honestly becoming a member of Microsoft or returning to OpenAI. The CEO stated he became "open to both alternatives."

"Look, that is for the OpenAI board and management and the personnel to select," Nadella said. "We selected to explicitly companion with OpenAI and we need to hold to accomplish that, and obviously, that relies upon on the humans of OpenAI staying there or coming to Microsoft." He informed Bloomberg that "no matter where Sam is, he is running with Microsoft."

Nadella also dropped a hint that Altman ought to sooner or later be considered for the CEO role at Microsoft. "Let's just say it is excellent to have lots of capable those who can emerge as CEOs of Microsoft," Nadella said at some point of Kara Swisher's "On" podcast.