Microsoft will sit on OpenAI's new board but with no voting rights. During a chaotic month that saw the company's controlling non-profit board fire and rehire CEO Sam Altman, the move decreases some of the remaining concerns regarding Microsoft's interest in the startup.
Microsoft Will Not Have a Board Seat
Microsoft, which has reportedly invested over $10 billion in the artificial intelligence (AI) industry, has not received invitations to join the new board alongside a few of OpenAI's most prominent supporters, according to reports made public on Tuesday, November 29.
Allegedly, the board, which was restructured after the firing and rehire of CEO Sam Altman, has no intention of giving seats to Microsoft or investors like Thrive Capital and Khosla Ventures. CEO Satya Nadella previously told CNBC that the ChatGPT maker's governance must change regardless of where Altman ends up.
READ ALSO: OpenAI CEO Sam Altman Returns: Can the Company Harmonize Amid Staff and Board Standoff?
Microsoft Secures Non-voting "Observer" Seat
The move to give Microsoft a board seat comes a week after OpenAI fired its existing board members following a botched dismissal of chief executive officer (CEO) Sam Altman, who was rehired. Although Microsoft participates in OpenAI's decision-making processes, Microsoft will not have direct control over the board's voting results, which Microsoft spokesperson declined to identify.
Microsoft's collaboration with OpenAI deepens as it secures a non-voting board seat following a $13 billion investment, making it the largest shareholder in OpenAI technology in its search engine Bing and Office products. Previously absent from the startup's board, Microsoft's newfound role was highlighted by OpenAI's CEO, Sam Altman, who praised the partnership.
Microsoft Undisclosed Representation
Microsoft had no representation on the board of directors that controlled OpenAI, resulting in it being surprised when Altman was fired and rehired. Microsoft's shares have risen 58% this year and currently trade at $378.85 U.S. per share. The individual representing them in board meetings remains undisclosed.
Who Is On The OpenAI Board?
Despite recent upheavals, Altman expressed satisfaction that OpenAI retained all employees. The organization is rebuilding its board with figures like Bret Taylor, Larry Summers, and Adam D'Angelo. OpenAI's CTO, Mira Murati, resumes her role, and Greg Brockman returns as president. Bret Taylor aims to enhance corporate governance and plans to step away once the board is fully staffed and the company stabilizes.
Meanwhile, Helen Toner, a board member since 2021, announced her resignation, emphasizing that it had nothing to do with her plan to slow down OpenAI's work but the board's supervisory role. Toner, who has experience with strategy, emphasized the difficulty of creating trustworthy AI. After accepting Toner's resignation, Altman confirms Tasha McCauley's as well. In a post on X, Sam Altman stressed the importance of the company's mission and best interests. He emphasized that experience must be learned for the company to advance after recognizing miscommunications with the board. Altman thanked Tasha and Helen for adding to OpenAI's strength and praised the board's independent assessment of recent events. Although the board's reasons for firing Altman are unclear, they included discussions about transparency, AI safety, and the rate of AGI development.
RELATED ARTICLE: Businesses and Tech Groups Warn EU Against Over-regulating AI Foundation Models
© 2017 Jobs & Hire All rights reserved. Do not reproduce without permission.
