OpenAI is in the process of fully collapsing on itself, following the ousting of former CEO Sam Altman in a shocking board decision. Exactly why the board decided to fire Altman is still unclear, but it seems increasingly likely that it was more about power-play shenanigans than anything else. What is clear is that Microsoft, through quick action and decisive strategic leadership from CEO Satya Nadella, is poised to emerge the clear winner, regardless of the final shape of what OpenAI looks like.
After what seem likely to have been tense negotiations yesterday, Nadella announced that both Altman and OpenAI president Greg Brockman would be joining Microsoft as employees, with Altman running his own AI group within the company as a CEO. Since then, nearly 500 employees have also indicated that they will quit unless the board resigns and Altman and Brockman are reinstated, which would mean that the company is essentially gutted.