Sam Altman’s Return to the Helm of OpenAI: What Does it Mean?
After his removal, OpenAI announced on Tuesday that they have come to an agreement with Sam Altman to resume his position as CEO, bringing an end to the intense deliberations surrounding the future of the company, which is at the forefront of the artificial intelligence revolution.
Here’s what analysts and investors are saying about the deal:
DANNI HEWSON, FINANCIAL ANALYSIS MANAGER AT AJ BELL:
“There are still huge questions about why Altman was fired and why Microsoft was apparently kept in the dark about the decision. It seems clear that Microsoft now has a much bigger role, that the partnership is getting stronger and the two companies are more integrated.”
DANIELA HATHORN, CAPITAL.COM ANALYST:
“The decision was not a big one, as turmoil had engulfed the company since last Friday’s decision to let Altman go, turning investors and employees against the board members involved in the failed coup.
“Microsoft… had openly backed Altman’s return over the weekend. Yet the tech giant now wants a seat on a new board that must be formed in the coming months as it wants to avoid any further surprises.”
CURRENT CAPITAL, OPENAI SHAREHOLDER
“OpenAI has the potential to be one of the most significant companies in the history of information technology. Sam and Greg (Brockman) are deeply committed to the company’s integrity and unparalleled ability to inspire and lead.”
“The resilience and power we’ve seen from the entire OpenAI team over the past few days has been extraordinary.
“We believe this is the best outcome for the company, its employees, those who build its technology, and the world at large.”
IPEK OZKARDESKAYA, SWISSQUOTE BANK ANALYST:
“His ouster was so shocking that the company’s existence was called into question. Now the outcome could be frustrating for Microsoft.
“While Microsoft will benefit handsomely from the rise of ChatGPT, OpenAI remains a satellite unit, and integrating Altman into the internal MSFT team would have made sense.”
SUSANNAH STREETER, HEAD OF MONEY AND MARKETS, HARGREAVES LANSDOWN:
“While it remains unclear what led to the tug-of-war that led to his initial departure, Sam Altman’s views on how to run the company will govern the future direction, especially as he is overseen under the new board.”
KELVIN WONG, Analyst, OANDA:
“This latest boardroom dispute has shown that Altman has Microsoft’s full support as a person and as long as he is in charge of OpenAI, and there should be no negative spillovers between OpenAI and Microsoft’s partnership.
“Altman and Brockman are also better suited to work together in a start-up culture because AI is currently in its infancy without the bureaucratic barriers of an MNC like Microsoft.”
MAK YUEN TEEN, DIRECTOR OF THE INVESTOR PROTECTION CENTER AT THE BUSINESS SCHOOL OF THE NATIONAL UNIVERSITY OF SINGAPORE:
“There could be good reasons why Microsoft doesn’t have a board of directors. It could even be to protect Microsoft from antitrust or conflicts, because Microsoft itself has its own AI unit.
“It (Altman’s return) may put an end to the surface turmoil for now, but deep governance issues may still remain.
“Sam Altman seems awfully powerful, and it’s unclear that any government would be able to control him. The risk is that the board will become a rubber stamp. Altman and (Microsoft CEO) Nadella may have pushed to give Altman much more leeway.”
VICTORIA SCHOLAR, INVESTMENT MANAGER, INTERACTIVE INVESTOR:
“While he (Microsoft CEO Nadella) is no doubt happy that order has been restored in OpenAI, where Microsoft is a major investor, it may be disappointing that he hasn’t cut Silicon Valley. superstar Altman after all.”
