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Sam Altman is said to be discussing return to OpenAI with company's board

Microsoft, which has invested $13 bn in OpenAI, is said to be leading the pressure campaign; however, due to openAI's unique structure, its investors have no say in who leads it

OpenAI’s CEO Sam Altman

OpenAI investors who supported Sam Altman are willing to invest if he were to start a new firm

NYT
By Cade Metz, Mike Isaac & Erin Griffith

Sam Altman and Greg Brockman, two top executives at OpenAI who left the company after a dramatic board meeting on Friday, are talking again with board members about returning to the artificial intelligence (AI) start-up, two people with knowledge of the matter said.

The discussions follow an outcry after Altman, 38, was ousted from his role as OpenAI’s chief executive. Since then, OpenAI’s investors and Altman’s supporters have pressured the board members of the start-up to bring Altman back, six people with knowledge of the situation said. They spoke on the condition of anonymity because the talks are confidential. Microsoft, which has invested $13 billion in OpenAI, was leading the pressure campaign, one of the people said. OpenAI investors who have expressed support for Altman to be reinstated were also willing to invest if he were to start a new company, something he began discussing almost immediately after he was forced out, sources said.
 
 
There is no guarantee that Altman or Brockman will be reinstated at OpenAI, the people said. Because of OpenAI’s unique structure — it is controlled by a nonprofit and its board has the power to govern the activities of the subsidiary, where its AI work is done — the company’s investors have no official say in what happens to the start-up or who leads it.
 
OpenAI, Microsoft and Thrive Capital declined to comment. The Verge earlier reported that OpenAI’s board was talking with Altman about potentially returning to the company. The new discussions between Altman, Brockman and OpenAI’s board were the latest twist in a fast-moving drama at what is perhaps the world’s highest-profile AI company.
 
The San Francisco start-up shot to fame last year when it released the chatbot ChatGPT and showed the power of artificial intelligence. Altman, a founder of OpenAI, rapidly became the face of the AI industry as Google, Meta and other giants raced to take the lead in the technology. But on Friday, OpenAI abruptly announced that its board had removed Altman as chief executive, saying “he was not consistently candid in his communications with the board.” The board did not elaborate.
Altman was asked to join a video meeting with OpenAI’s board at noon on Friday and was immediately fired, Brockman has said. Brockman said that even though he was the chairman of the company’s board, he was not part of the meeting. He later said he was quitting the company.
 
OpenAI had six board members before Altman was forced out and Brockman left. The other four are Ilya Sutskever, an OpenAI founder; Adam D’Angelo, the chief executive of Quora, the question-and-answer site; Helen Toner, a director of strategy at Georgetown’s Center for Security and Emerging Technology; and Tasha McCauley, an entrepreneur and computer scientist.
Before Altman’s ouster, tensions had been rising at OpenAI as the company’s profile soared. In particular, Sutskever, a respected AI researcher, had grown increasingly worried that OpenAI’s technology could be dangerous and that Altman was not paying enough attention to that risk, sources have said. Sutskever also objected to what he saw as his diminished role inside the company.
 
Altman’s firing drew attention to a longtime division in the AI community between people who believe AI is the biggest business opportunity in a generation and others who worry that moving too fast could be dangerous. The ouster also caused waves across the tech industry, where Altman is well known not only from OpenAI but from his years leading Y Combinator, the Silicon Valley start-up incubator. Many of OpenAI’s investors — which include Microsoft, Thrive Capital and Sequoia Capital — did not learn about Altman’s exit until a minute before his departure was announced or after the news became public. By Friday evening, Altman and Brockman were racing to set up a new AI company, three people familiar with the situation said. They also considered which OpenAI employees would join them. At least three other OpenAI employees have resigned over the last two days.
 
Altman took a break to poke at OpenAI’s board on social media, with a joke threatening to start “going off,” or speaking candidly, about the situation. Tech investors also rushed to show their support for Altman and hinted that they would back his next venture.
 
Alfred Lin, an investor at Sequoia Capital, a venture capital firm that invested in OpenAI and Altman’s first start-up, Loopt, posted on X that he looked forward to “the next world-changing company” that Altman and Brockman would build. Eric Schmidt, Google’s former chief executive, posted, “I can’t wait to see what he does next.”
 
While still leading OpenAI, Altman had pitched several ideas for new projects to investors and others in recent months. During a fund-raising trip last month in the Middle East, Altman spoke about AI-related projects, including a plan to develop custom chips for AI that would compete with the chip company Nvidia. Altman also spoke with Masayoshi Son, the chief executive and billionaire founder of the tech conglomerate SoftBank, about investing in an effort to build an AI device with Jony Ive, the former chief design officer at Apple.

Germany, France, Italy reach pact on AI regulation 

France, Germany and Italy have reached an agreement on how artificial intelligence should be regulated, according to a joint paper seen by Reuters, which is expected to accelerate negotiations at the European level. The three governments support commitments that are voluntary, but binding on small and large AI providers in the European Union that sign up to them.
The European Commission, the European Parliament and the EU Council are negotiating how the bloc should position itself. In June, the European Parliament presented an “AI Act” designed to contain the risks of AI applications and avoid discriminatory effects, while harnessing the innovative power of AI.

Meta disbands Responsible AI team to other groups

Meta Platforms is dispersing the members of its Responsible AI team among other groups in the company where they will continue to work on preventing harms associated with AI, it said on Saturday. A Meta spokesperson said the firm plans to bring the staff closer to the core product and technology development.

Accenture Plc’s European technology lead said generative AI could eventually “free up” about 40% of working hours across industries, allowing workers to focus on other tasks. Speaking at a Workday conference in Barcelona, Accenture’s Jan Willem Van Den Bremen said the rise of the technology has prompted companies to rethink which tasks they want staff to perform.

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First Published: Nov 20 2023 | 12:15 AM IST

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