"MS's Coup".. OpenAI Threatens 'Mass Resignation' Over Altman Move (Summary)

Sam Altman, the former CEO of OpenAI known as the 'father of ChatGPT,' decided to join Microsoft (MS) just three days after his sudden dismissal, while OpenAI employees have announced a collective resignation. They issued a 'strong warning' stating that if the entire board of directors does not resign and Altman is not reinstated, they will move to MS. Analysts say that OpenAI, which rapidly grew thanks to the ChatGPT craze, now faces an existential crisis due to this incident.

[Image source=AFP Yonhap News]

"Altman Must Be Reinstated" - Over 700 Employees Sign Petition

The New York Times (NYT) reported on the 20th (local time) that more than 700 out of 770 OpenAI employees signed a petition pledging to resign if Altman is not reinstated, putting the company's survival at risk. Earlier that morning, journalist Kara Swisher first revealed the letter on her social media platform X (formerly Twitter), which included over 500 names, and the number of signatories has since grown. Multiple sources told the NYT that by that morning, 700 employees had signed the petition.

Currently, the employees are demanding the full resignation of the board, the return of Altman and Greg Brockman, the co-founder who left OpenAI after Altman’s dismissal, and the appointment of two new independent directors.

They criticized the board's sudden ousting, saying it "jeopardized all operations and damaged our mission and company," and claimed, "It has become clear that you lack the capability to oversee OpenAI." They also stated, "We cannot work with people who lack competence, judgment, and consideration for employees," and warned, "Those who signed below may join the MS subsidiary led by Altman." The letter also included information that MS has already guaranteed positions for these employees in the subsidiary led by Altman.

They also refuted claims related to the speed of AI development, which has been cited as a reason for Altman’s dismissal. They said, "Our work on AI safety and governance is setting global standards," dismissing criticisms that development is proceeding without sufficient caution regarding AI risks.

[Image source=Reuters Yonhap News]

Altman Joins MS After Failed Reinstatement... OpenAI Plunged into Chaos

The petition was made public after Altman’s move to MS was announced that morning. Following his sudden dismissal on the 17th, investors including MS strongly opposed the decision, and there was speculation over the weekend that Altman might return. However, the OpenAI board made it clear the night before that there would be no reinstatement, and announced that Emmett Shear, co-founder of the video streaming platform Twitch, would serve as OpenAI’s interim CEO.

Ultimately, with reinstatement off the table, Altman decided to join MS. Just hours after the OpenAI board’s announcement, Satya Nadella, MS CEO, announced that Altman and Brockman would join MS to lead a new advanced AI research team. The Wall Street Journal (WSJ), citing sources, reported that Altman was shocked by the OpenAI board’s decision and had been confident until then that he would be reinstated. The Washington Post (WP) described the news of Altman joining MS as the latest twist in the weekend drama that began with the OpenAI board’s announcement of his dismissal on Friday, saying it "shook the industry."

OpenAI, which has gone through three CEOs in just three days, is in turmoil. This is also why most employees have joined the collective resignation move. Not only key members like Mira Murati and Jason Kwon but also Ilya Sutskever, the chief scientist and one of the four board members who led Altman’s ousting, signed the petition.

On the morning of the same day, Sutskever posted on his X account, "I deeply regret participating in the board’s actions," adding, "I have no intention of harming OpenAI. I love everything we have built together and will do everything I can to reunite the company." Shortly after, Altman quoted this post and added three hearts. Employees have also expressed solidarity on social media platforms like X, posting messages such as "OpenAI is nothing without its people."

OpenAI Faces Existential Crisis

Ultimately, if the OpenAI board does not reinstate Altman, the company risks being left as a mere shell, threatening its very existence. The NYT predicted, "If most OpenAI employees leave for MS, the company will struggle to build powerful next-generation AI technologies after ChatGPT." Gaurav Oberoi, founder of Reshion, called it "a decade-long failure," pointing out it as "a lesson from destroying immense value and reputation overnight."

There are also assessments that Altman still controls OpenAI. Dan Ives of Wedbush Securities said, "Despite the board’s weekend spectacle, Altman is directing OpenAI from his position at MS." Fred Habmeyer, an analyst at Macquarie, described it as a "MS coup" in an investor memo, explaining that MS created this situation by hiring Altman and guaranteeing positions for his colleagues.

Meanwhile, Emmett Shear, appointed as OpenAI’s interim CEO, announced that he would investigate the series of events surrounding Altman’s dismissal. On his X account, he stated, "We will hire an independent investigator to prepare a report on the events that caused OpenAI’s turmoil," emphasizing, "It is clear that the procedures and communications related to Altman’s dismissal were very poorly handled, severely damaging our trust. If necessary, we will strongly pursue governance changes."

This content was produced with the assistance of AI translation services.