In recent days, the high-tech industry has been thrown into turmoil following the impeachment case of the CEO of OpenAI. The board of directors of the artificial intelligence company that created ChatGPT decided to remove the founder, Sam Altman. Reports suggest that disagreement regarding commercialization of new AI technologies led to this decision.
Meanwhile, Emmett Shir, one of the founders of the streaming site Twitch, has been appointed as interim CEO of OpenAI until a permanent CEO is found. The news of Altman’s ouster had an immediate impact on Microsoft’s stock, causing a 1.7% decline. However, after Satya Nadella announced on Twitter that Altman and Greg Brockman would join Microsoft to lead a new advanced research team in AI field, Microsoft shares rose 1.5% in opening trade.
According to stock analysts, Microsoft’s move to recruit Altman is seen as a strategy to prevent him from establishing competing start-up or working for any other competitor like Google or Amazon and risking its leadership in AI and cloud technology sector. This decision was viewed as a damage control move by the tech giant and his prominent role in AI field along with potential instability at OpenAI after his departure could impact company’s commercial relationships.
Altman’s departure from OpenAI has raised concerns about unusual corporate structure where investors did not have seat on board of directors which allowed such coups to happen easily. This may be a lesson for investors when making future investments in companies. Despite this controversy, Altman’s new role at Microsoft is seen as strategically important for company and its future in AI field