Unlock the Secrets to OpenAI’s Future: 7 Must-Know Facts!

OpenAI, the creator of ChatGPT, caused a significant amount of controversy and speculation on Friday when it removed its co-founder and CEO, Sam Altman. The unexpected news has surprised investors, partners, and employees, and has put the leading artificial intelligence startup in a vulnerable position.

You need to know the following:

Why is OpenAI so important?

The San Francisco company launched ChatGPT a year ago, and the AI chatbot now has 100 million weekly users. ChatGPT’s massive success triggered a wave of investment in generative AI and pushed AI into mainstream consciousness. OpenAI’s technology has also become a benchmark for a growing list of competing AI companies around the world.

OpenAI was valued at about $86 billion in a takeover bid that was nearing completion in the days before Altman’s exit. The sale of shares is now at stake. OpenAI’s close relationship with Microsoft Corp., which owns about 49% of OpenAI and is a key supplier of its computing power, only adds to the startup’s standing in the industry. Microsoft shares were gyrated in response to the twists and turns of OpenAI’s leadership upheaval.

What just happened in OpenAI?

On Friday, a somewhat vague statement from OpenAI’s board said Altman was fired as CEO because “he was not consistently honest in his communications with the board.” Greg Brockman, another founding member, was demoted from the board and resigned in protest. Both men returned on Sunday to negotiate a return to OpenAI, which in part required replacing current board members. OpenAI’s investors and top executives also demanded Altman’s reinstatement.

Instead, OpenAI’s board named Twitch co-founder and former executive Emmett Shear as its second interim CEO after the first — Chief Technology Officer Mira Murati — backed Altman and Brockman’s return to the company. Microsoft boss Satya Nadella then said Altman and Brockman would lead a new internal AI research group at the $2.8 trillion software company. Almost all OpenAI employees have since threatened to quit and join Microsoft unless Altman is reinstated and the board resigns.

What do the competing groups want?

Altman has been at the forefront of driving OpenAI from its roots as a non-profit organization to a globally recognized brand associated with the cutting edge of AI research. But Altman also clashed with members of his board over how quickly generative AI is being developed, how to commercialize the products and how to reduce their potential harm to the public, people with knowledge of the matter have said. The government has not specifically issued additional public statements explaining the reason for Altman’s resignation.

For Microsoft, OpenAI is the key to its AI strategy. Nadella has indicated he’s comfortable with Altman and his team, either inside Microsoft or returning to OpenAI — as long as he can still rely on the combined strength of expertise and research he gained this time last week. Other players in the industry, including Nvidia Corp. and Salesforce Inc., have already offered to hire OpenAI’s dubious software engineers. AI capability is the industry’s scarcest resource after Nvidia’s gold standard accelerator chips.

Why do some people think OpenAI’s technology could be dangerous?

For the same reason, they are concerned that AI generally poses a threat. There is widespread fear that the rapid development of artificial intelligence, which can learn and evolve without human assistance, could lead to an intelligence that escapes our collective control. However, the technology is likely far from this theoretical scenario. People are also striving to understand the full implications of intelligent computers that can add or displace jobs, make accurate predictions about the future, and simulate human reasoning and conversation.

How does the OpenAI turmoil reflect the broader conversation about artificial intelligence?

While we still don’t have a full explanation of the board’s reasons for terminating Altman, a split over the pace of commercialization appears to have been a key issue. This has happened in several other arenas as well. For example, Google has long advocated a slow and cautious approach, which made it look like a laggard when OpenAI made a splash with ChatGPT despite more than a decade of investment and research into AI.

Labels such as “accelerator” and “security” have appeared, showing how optimistic the human view is of the potential benefits and harms of AI. Some accelerationists have argued that the U.S. needs to move as fast as possible to avoid being overtaken by China, whose investment in artificial intelligence is “just amazing to see,” says Google CEO Sundar Pichai.

Why do people want Altman back in OpenAI?

He has been instrumental in raising the profile of OpenAI and negotiating a multi-billion dollar deal with Microsoft, which established the company with the necessary technical resources. His background working at startup accelerator Y Combinator and mixing in Silicon Valley’s venture capital circles also means he’s well-placed to lead the company as it seeks additional investment and support.

The $86 billion takeover bid led by Thrive Capital has yet to be fully called off, but it now appears to be dependent on Altman returning and getting OpenAI back to the business it was before Friday’s radical change.

What’s next for artificial intelligence?

The new technology is being looked at and considered globally, and the UK recently organized an international conference to discuss the right approaches to deploying it. Private companies and government bodies are negotiating how to mitigate potential harms without stifling innovation. Even in China, where Beijing has been first out of the gate with some regulations on the use of artificial intelligence, the approach is aware of the advantages and competitive advantages of technological leadership.

When it comes to the development and use of artificial intelligence, at the moment the task of most is to acquire as much computing power as possible to train large basic models. Next on the agenda is optimization and specialization. Before last week’s chaos, OpenAI sought to develop artificial intelligence “agents” that could handle more complex tasks for users.