How Sam Altman return as OpenAI chief impacts Microsoft? Experts clarify

The latest disaster at OpenAI, the creator of ChatGPT, seems to be reaching decision in a full circle. The co-founder and CEO, Sam Altman, confronted termination from the board, main to 2 interim CEOs inside per week earlier than Altman’s reinstatement.

Sam Altman, left, appears onstage with Microsoft CEO Satya Nadella at OpenAI's first developer conference, on Nov. 6, 2023, in San Francisco.(AP)
Sam Altman, left, seems onstage with Microsoft CEO Satya Nadella at OpenAI’s first developer convention, on Nov. 6, 2023, in San Francisco.(AP)

Microsoft, OpenAI’s main investor holding a 49% stake, expressed dissatisfaction with Altman’s ouster. With the backing of Microsoft CEO Satya Nadella, Altman acquired a suggestion to hitch Microsoft. Now that Altman is again at OpenAI, questions come up concerning the shifting energy dynamics and the affect on Microsoft’s AI objectives.

Analysts and buyers weigh in on the scenario:

Microsoft misses probability to strengthen its personal AI unit?

Victoria Scholar, head of funding at Interactive Investor:

“While he’ll (Microsoft CEO Nadella) no doubt be pleased about the fact that order has been restored at OpenAI, in which Microsoft is a major investor, there might be an element of disappointment that he hasn’t snapped up the Silicon Valley superstar Altman after all.”

Also read: Satya Nadella’s reaction as Sam Altman returns to OpenAI

Future of OpenAI and Microsoft partnership?

Kelvin Wong, an analyst at OANDA:

“This newest boardroom tussle has proven that Altman has the total backing of Microsoft as an individual and so long as he stays accountable for OpenAI, and there shouldn’t be any damaging spillover results between the partnership of OpenAI and Microsoft.

“Altman and Brockman are also more suited to collaborate in start-up culture given the infancy of AI at this juncture without any red-tape hindrances from an MNC such as Microsoft.”

Ipek Ozkardeksaya, an analyst at Swissquote Bank:

“His ousting upset to a point that company’s existence was put to question. Now, the outcome could be frustrating for Microsoft.

“Even though Microsoft benefits generously from ChatGPT’s uprise, OpenAI remains a satellite unit, and integrating Altman in an internal MSFT team would’ve made sense.”

Will Microsoft consider for a board seat in OpenAI?

Mak Yuen Teen, director of Center for Investor Protection at National University of Singapore Business School:

“There could also be good explanation why Microsoft doesn’t have a board seat. It could even be to guard Microsoft from anti-trust actions or conflicts as Microsoft itself has its personal AI unit.

“It (Altman’s return) may put an end to the turmoil on the surface for now but there may continue to be deep governance issues that remain.

“Sam Altman appears awfully highly effective and it’s unclear that any board would be capable to oversee him. The hazard is the board turns into a rubber stamp. Altman and (Microsoft CEO) Nadella could have pushed to permit Altman a a lot freer hand.”

Daniela Hathorn, an analyst at Capital.com:

“Microsoft… had openly supported Altman’s return over the weekend. Still, the tech giant now wants a seat on the new board that will need to be formed over the coming months, as it wants to avoid any further surprises.”

(Inputs from Reuters)

Source web site: www.hindustantimes.com

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