OpenAI, creator of chatbot ChatGPT, was plunged into turmoil after Microsoft hired its suddenly ousted CEO Sam Altman for a new artificial intelligence venture. Hundreds of OpenAI employees threaten to follow.
On Friday, OpenAI's board removed Altman as CEO, saying he lacked candor in communications. But the shocking move backfired, roiling the prominent AI startup Altman helped build.
Microsoft swiftly recruited Altman and OpenAI's departing president to lead an advanced AI research team. In response, over 300 OpenAI employees, including top executives, signed a letter demanding the board resign and Altman be reinstated.
OpenAI's new interim CEO admitted "extremely poor" handling of Altman's removal. He vowed to investigate it and reform management after the leadership exodus to Microsoft.
But the employee uproar and loss of its visionary CEO deals a major blow to OpenAI. With its key leaders and talent exiting to Microsoft, doubts have emerged over OpenAI's future direction and ability to compete.
The chaos highlights growing pains at OpenAI as it rapidly expanded from an AI research nonprofit into a unicorn commercial company behind breakout ChatGPT. Tensions apparently mounted over pace and ethics.
But Microsoft now stands to gain from OpenAI's turmoil, harnessing Altman's prowess. The episode underscores AI talent wars as Microsoft and OpenAI shape defining technology.