Some big supporters of OpenAI, like Microsoft, Thrive Capital, and Khosla Ventures, may not get seats on the company’s board, even with changes in management.
The new board of OpenAI has decided not to give board seats to these outside investors. This decision shows that the new board is more focused on making sure AI is safe rather than just making money for investors, according to Reuters and The Information.
OpenAI’s Money, Leadership Moves, and the New Board
Microsoft is the biggest supporter of OpenAI and has invested more than $10 billion in the company. Khosla Ventures invested early in 2019, and Thrive Capital is leading a deal to buy shares from OpenAI employees, valuing the company at over $80 billion.
Thomas Hayes, the chairman of Great Hill Capital hedge fund, said on Tuesday that considering Microsoft’s significant investment, it wouldn’t make sense for the company to just “sit back quietly.”
On November 17, the board of OpenAI fired the company’s co-founder and CEO, Sam Altman. However, Altman made a surprising comeback five days later. On November 22, OpenAI shared the news of Altman’s return and the departure of two board members who were part of the decision to remove him initially.
The upcoming board of the company will initially include Larry Summers, the former treasury secretary, Bret Taylor, the former co-CEO of Salesforce, and Adam D’Angelo, the founder of Quora. As reported by the Verge, this new board is expected to look for individuals to join and expand the board to a total of nine members.
OpenAI Manages Itself and Microsoft’s Role in Governance Changes
OpenAI has an uncommon way of managing its affairs, where the non-profit board oversees the for-profit arm. This non-profit board is designed to ensure that the company stays committed to its mission of creating AI for the betterment of humanity.
Satya Nadella, the CEO of Microsoft, had expressed the desire for changes in OpenAI’s governance structure after Altman was removed from the board. Nadella and other investors pushed for Altman to be reinstated.
During an interview with tech journalist Kara Swisher on November 21, Nadella suggested that Microsoft might consider having a board seat at OpenAI. He mentioned, “We’ll address that if it happens, but I believe we need to ensure that our interests are well-protected,” speaking to Swisher.
Conclusion
OpenAI’s recent developments highlight a shift in focus from investor profits to AI safety. Despite significant investments from major backers like Microsoft, the new board resists offering them seats, emphasizing the importance of prioritizing AI’s responsible development. The return of CEO Sam Altman, urged by investors, adds complexity to OpenAI’s evolving landscape.
